The private-equity owners of WaveDivision Holdings, parent company of Kirkland, Washington-based cable company Wave Broadband, are reportedly looking to sell the company for more than $2 billion.
According to Reuters, buyout firms Oak Hill Capital Management LLC and GI Partners—which jointly own Wave, along with the operator’s top management—have hired investment bank UBS Group AG to conduct an auction for the cable company.
Reuters cites “people familiar with the matter.” Executives connected to Wave have yet to comment.
Wave has residential and commercial cable TV, broadband and voice customers in the Seattle, Sacramento, San Francisco and Portland markets. The company reported earnings before interest, taxes, depreciation and amortization of around $200 million last year.
Wave is competing in a cable market that is ripe for consolidation. Last week, John Malone’s Liberty Interactive announced the $1.12 billion acquisition of Alaska’s General Communications Inc., for example.
Acquisition targets, meanwhile, appear to be fattening up.
In January, for example, Phoenix, Ariz.-based Cable One—which has been tied to purchase rumors by Altice NV—paid $735 million in cash for Sikeston, Missouri-based cable operator NewWave Communications.
Last week, Wave announced that it has acquired Seattle-based ISP Cascadelink, which delivers broadband connectivity to residential and commercial customers in multiple dwelling unit (MDU) residential and office buildings throughout the Seattle area.
Terms of the acquisition were not revealed.
Cascadelink provides symmetrical gigabit service to thousands of customers in an expanding MDU network of more than 100 Seattle-area apartments, condominiums and commercial office buildings.