TDS furthers broadband, business growth strategy with $261M BendBroadband acquisition
Telephone and Data Systems (TDS) has added another element to its growing cable broadband and business strategy by reaching an agreement to acquire Bend, Oregon-based cable operator BendBroadband for $261 million.
Upon completion of this deal, TDS will immediately expand not only its broadband and video reach, but also its managed services capabilities for business customers.
Through the acquisition, TDS will gain a provider whose network passed about 79,000 homes and businesses, with approximately 36,000 video subscribers, 41,000 high-speed broadband subscribers and 22,000 digital voice subscribers.
In addition to the broadband and fiber assets, TDS will gain two other affiliated companies: BendBroadband Vault, a Tier III data center providing colocation and managed services, and Zolo Media, a cable advertising and broadcast business.
Providing managed services is another key angle of this acquisition. Similar to its earlier purchase of Baja Broadband, TDS can also extend its managedIP services via its OneNeck subsidiary to regional businesses in Oregon. It already has begun extending business services such as its security products PC Defender and online backup to the existing Baja Broadband business customer base.
"We will leverage BendBroadband's considerable expertise across our growing cable business, driving residential and commercial growth by delivering competitive broadband, video and managed services over the high-capacity network," said David A. Wittwer, president and CEO, TDS Telecom, in a release.
After last year's Baja deal, TDS' President and CEO LeRoy Carlson told investors in February that the telco would look at similar details in the future. At that time, Carlson added that if Comcast (NASDAQ: CMCSA) was successful in purchasing Time Warner Cable (NYSE: TWC), his company would consider buying up regional assets that the proposed new company would be required to divest in order to get approval of the mega deal.
After meeting customary regulatory approvals and other conditions, TDS said the deal is expected to close in the third quarter of 2014.
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