EarthLink said Oct. 15 that a group led by WaveDivision Capital plans to acquire the U.S. provider, which reports more than 500,000 customers across its internet and managed-services businesses.
The proposed group also includes Stephens Capital Partners and The Pritzker Organization, working with EarthLink’s management. WaveDivision Capital is led by CEO Steve Weed. Bank Street Group was WaveDivision Capital’s exclusive financial adviser, EarthLink said.
Trive Capital Partner Shravan Thadani said the firm plans to keep supporting EarthLink through a minority investment. EarthLink’s announcement dates Trive’s partnership with management to 2019.
The company says partnerships with fiber and 5G providers make its fiber internet service available to more than 68 million homes. CEO Glenn Goad said EarthLink aims to enter additional markets and reach more households and small businesses.
Windstream Holdings’ filing with the Securities and Exchange Commission records a sale to a Trive affiliate and nQue Technologies that closed Dec. 31, 2018. The filing describes the transferred business as substantially all of Windstream’s consumer competitive local exchange carrier business, identified there as its former EarthLink consumer business. It lists $320.9 million in cash, net of a working-capital adjustment.
EarthLink did not disclose a purchase price, ownership percentages or a closing date. Its announcement did not say the proposed acquisition had been completed.
