WOW! closes sale of 3 service areas to Astound Broadband

WideOpenWest Inc. said Nov. 1 that it completed the sale of its service markets in Chicago; Evansville, Ind.; and Anne Arundel, Md., to Astound Broadband LLC for $661 million.

As part of the deal, WOW! worked on the transition of its staff and customers in the affected service markets to Astound Broadband. The regional cable operator also struck a transition services agreement with Astound Broadband to ensure continued service in the areas during the transition period after deal closing.

BofA Securities Inc. was financial adviser to WOW! on the deal, with Wachtell Lipton Rosen & Katz and Honigman LLP as legal counsels. Simpson Thacher & Bartlett LLP and Kelley Drye & Warren LLP were legal counsels to Astound Broadband.

The transaction follows WOW!'s earlier sale of its Cleveland and Columbus service areas in Ohio to Cogeco Communications Inc. unit Atlantic Broadband Group LLC for $1.13 billion. Together, the deals will allow WOW! to cut down its debt, boost its financial position and support its broadband-focused strategy.

Astound Broadband is composed of Radiate Holdco LLC, a telecom holding company affiliated with RCN Telecom Services LLC, Grande Communications Networks LLC and WaveDivision Holdings LLC.