Telephone and Data Systems announces agreement to acquire BendBroadband
An agreement was recently announced in which TDS Telecom parent company Telephone and Data Systems plans to acquire BendBroadband in a $261 million deal, according to GigaOM. The deal is expected to close during the third quarter of this year.
TDS Telecom is the "seventh largest local exchange telephone company in the U.S." The company provides communities with TV, Internet and phone services. Telephone and Data Systems is a Fortune 500 company providing services to 5.9 million customers across the country.
BendBroadband provides communications services to Central Oregon. The company provides cable television, broadband and fiber connectivity services. Through this deal, Telephone and Data Systems will acquire all of BendBroadband's assets, which include two additional affiliate companies that BendBroadband currently operates.
"We are building a high-quality cable business that will deliver value over the long term. BendBroadband's culture of innovation and its attractive market demographics make it a strategic addition to our cable, broadband and data center portfolio," said LeRoy T. Carlson, Jr., president and CEO, Telephone and Data Systems in a press release. "We are committed to investing resources in adjacent businesses like cable, where we can leverage our expertise and competencies to support profitable growth."
Additionally, BendBroadband's president and CEO, Amy Tykeson, noted that with the acquisition, hundreds of jobs will be able to stay in Central Oregon.
Telephone and Data Systems also owns Baja Broadband, U.S. Cellular, and OneNeck IT Solutions. The acquisition of BendBroadband fits with the company's acquisition strategy, as it has recently acquired other similar companies. In February, the company acquired Baja Broadband in a $267.5 million deal. With this acquisition strategy, Telephone and Data Systems continues to expand its business offerings to a wider range of customers, allowing the company to grow its profits over time.