Private equity firm Pamlico Capital has closed its previously announced US$262m acquisition of broadband assets in South Dakota, Minnesota and Iowa from regional operator WOW through its Clarity Telecom unit. Pamlico previously backed rural broadband…
Private equity firm Pamlico Capital has closed its previously announced US$262m acquisition of broadband assets in South Dakota, Minnesota and Iowa from regional operator WOW through its Clarity Telecom unit.
Pamlico previously backed rural broadband provider NewWave Communications in 2003 until the cableco’s assets were sold to Time Warner Cable in 2011 and Rural Broadband Investments in 2013.
Clarity will rebrand the WOW asset as Vast Broadband within the next few months.
Commenting on the deal, Clarity CEO Jim Gleason said: “The growth opportunities considering the local economy, the excellent network and the local staff commitment make this a very exciting acquisition into the broadband communications industry.”
The acquisition represents the fourth investment in Pamlico Capital III, a fund with US$650m of aggregate commitments.
K&L Gates acted as legal advisers to Pamlico and Clarity on the deal, while GE Capital and SunTrust Robinson Humphrey were the lenders.
WOW is the US’ tenth-largest pure play cableco according to the NCTA, and offers high-speed internet, cable TV, and telephony services.
It operates in Illinois, Michigan, Indiana, Ohio, Kansas, South Dakota, Tennessee, Alabama, Georgia, Florida and South Carolina.
