Multiband will sell more than 7,000 California-based video subscribers to Consolidated Smart Systems under terms of a pact announced Monday.
The two companies initially closed on the first portion of the transaction, with total consideration on the first sale portion expected to be valued at approximately $1,000 per subscriber, representing a significant premium to Multiband's book value for the initial group of subscribers.
Multiband and Consolidated anticipate the remainder of the sale to close early in 2007.
Multiband will continue to provide customer-support, billing, collection, voice, and data services to the customers involved, while Consolidated will assume field-support, marketing and installation activities.
“Not only are we able to advance our growth in the California marketplace, we now have the tremendous advantage of being able to do so while maintaining competent customer services through the existing operator,” Consolidated CEO Dan Terheggen said in a prepared statement.