Frontier Communications sells four US operations for $1.3bn
10 June 2019 | Natalie Bannerman
Frontier Communications has entered into a definitive agreement with WaveDivision Capital (WDC), for the sale of its assets in Washington, Oregon, Idaho, and Montana for $1.3 billion.
“The sale of these properties reduces Frontier’s debt and strengthens liquidity,” said Dan McCarthy (pictured), president and CEO of Frontier. “We are pleased to have a buyer with extensive experience building and operating advanced fibre-based communications assets in these regions. We will be working very closely with the new owners to ensure a smooth, successful transition for our customers and the communities we serve.”
The deal, which is in partnership with Searchlight Capital Partners (Searchlight), is for Frontier’s assets in all four states where serves close to 350,000 residential and commercial customers.
“We are excited to be partnering with Searchlight on this opportunity to acquire Frontier’s operations in the Northwest,” added Steve Weed, CEO of WDC, and founder and former CEO of Wave Broadband. “We have a proven track record of customer satisfaction by providing fast, reliable internet connectivity combined with great service and support. Having grown up in the Northwest, I’m excited to be able to continue to serve my community through this new venture.”
Frontier will continue to operate the business and serve customers with existing products and services until the transaction closes. While, WDC and Searchlight have formed a new company to operate the business and honour existing customer commitments and contracts after the transaction closes.
“Searchlight is pleased to have reached this agreement with Frontier,” continued Eric Zinterhofer, founding partner of Searchlight. “We are excited to partner with Steve and his team, who have an outstanding track record of building best-in-class fibre networks, and who will enable us to accelerate the deployment of superior next generation products for our residential and business customers.
The deal is subject to regulatory approvals and other customary conditions; it is due to close within a year.
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