Charter Communications Inc. said it has reached a definitive agreement to
sell its Port Orchard, Wash., system, with about 25,500 subscribers, to
WaveDivision Holdings LLC for about $91 million.
WaveDivision is headed by former Millennium Digital Media executive Steve
Weed. In March, WaveDivision purchased systems in Washington state with 22,000
subscribers from Northland Communications Inc. for about $40 million.
With the Charter deal, WaveDivision has a total of about 52,000
According to a press release, the Port Orchard system has 12,900
digital-cable customers and 11,000 cable-modem customers.
The deal is expected to close by the end of the year.
Denver-based cable investment banker Daniels & Associates represented
Charter in the transaction.
Last year, Charter had identified for sale several systems with about 600,000
subscribers that it felt were geographically nonstrategic. In a press release,
Charter said Port Orchard is one of those systems.
The purchase price works out to be about $3,600 per subscriber. WaveDivision
is backed by New York private-equity firm Sandler Capital Management.
Daniels president Brian Deevy said the deal was encouraging because it shows
that private equity groups are willing to pay strong prices for well-built
"We've said all along that there are a lot of people in private equity that
see the upside and see the advantages of high-speed data and digital," Deevy
said. "This is clearly good news for Charter, good news for Steve Weed and good
news for the guys who are watching the industry."