#United States #Boca Raton #DigitalBridge #Crestview #WOW!

DigitalBridge and Crestview Partners Complete Major Acquisition of WideOpenWest

In a significant move for the digital infrastructure landscape, DigitalBridge Group, Inc. and Crestview Partners have finalized their acquisition of WideOpenWest, Inc. (commonly referred to as WOW!), a recognized leader in providing fiber-broadband internet services across the United States. The deal, valued at approximately $1.5 billion, marks a pivotal expansion in both companies' strategic efforts to enhance connectivity solutions and bolster growth in underserved markets.

DigitalBridge, known for its expertise in investing in digital infrastructure, has emphasized that this acquisition is about more than just numbers—a new chapter for WOW! is about to unfold. Jonathan Friesel, a Senior Managing Director at DigitalBridge, expressed optimism about the new era of growth and the intention to invest substantially in network enhancements and enrich the customer experience. He remarked, "We look forward to investing in network and customer experience enhancements, pursuing operational excellence, and delivering an exceptional connected experience over WOW!'s high-performance networks."

Crestview Partners, a prominent private equity firm focusing on the middle market, also views this acquisition as a significant infrastructure investment. Brian Cassidy, President and Head of Media at Crestview, stated that the transition to a private company would allow WOW! strategic flexibility to compete effectively and innovate more rapidly within its markets. This move is expected to empower WOW! to deliver advanced technology solutions to customers quickly, reinforcing its competitive edge in the ever-evolving broadband landscape.

Under the terms of the deal, WOW! shareholders will receive $5.20 in cash per share. As a result of this acquisition, the common stock of WOW! will no longer be listed or traded on any public exchange, marking the end of an era for the publicly traded company.

Industry Insights

This acquisition comes during a time of increasing demand for robust internet services in various segments of the U.S. economy, especially after the dramatic shifts in consumer behavior following the global pandemic. The increased reliance on digital solutions has amplified the necessity for providers such as WOW! to deliver reliable and high-speed internet connectivity. Given WOW!'s existing infrastructure and the financial backing from DigitalBridge and Crestview, the newly private entity is poised for aggressive growth that may include network modernization initiatives and broader fiber deployments.

Support from Financial Advisors

Several key financial advisors played a role in structuring this transaction. Centerview Partners LLC served as the sole financial advisor for the special committee of WOW!'s Board of Directors, which was tasked with evaluating the transaction. Legal counsel was provided by Wachtell, Lipton, Rosen & Katz for WOW!, while LionTree Advisors acted on behalf of DigitalBridge and Crestview. In addition, Morgan Stanley and Goldman Sachs were engaged as structuring advisors, and legal frameworks were established with Simpson Thacher & Bartlett LLP and Davis Polk & Wardwell LLP supporting the deal's legal aspects.

About the Companies Involved

DigitalBridge is a leading global alternative asset manager with a strong track record in investing in digital infrastructure. With a portfolio that encompasses various facets of the digital ecosystem, the firm manages assets worth over $108 billion.

Crestview Partners, established in 2004, focuses on middle-market investments and has amassed over $10 billion in capital commitments. Its portfolio spans across various sectors, including media, industrials, and financial services.

As for WOW!, it is a prominent broadband provider offering a suite of services, including high-speed internet, cable TV, and mobile services across 20 markets, catering to both residential and business customers.

Looking Ahead

The completion of this acquisition not only marks a transition for WOW! but also sets the stage for an exciting future in broadband connectivity. With strong backing from DigitalBridge and Crestview, WOW! is expected to enhance its operational capabilities significantly and take strategic steps towards delivering cutting-edge connectivity solutions across its markets. Observers will be closely monitoring subsequent developments as the new management team implements its growth strategies in the rapidly evolving broadband landscape.