Wave Broadband Hires Waller Capital To Seek Investment, Fueling Expansion

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KIRKLAND, WASH. — Wave
Broadband, a mid-sized cable
operator, has hired Waller
Capital and RBC Daniels as coadvisers
to seek out funding
to buy out its majority investor
and fund future acquisitions,
Wave CEO Steve Weed
said last Thursday.

Weed, who
formed
Wave
Broadband
in 2003
with the
backing of
New York
private
equity firm
Sandler
Capital, has
grown the company to about
320,000 video, voice and data
subscribers, largely through
acquisitions.

Its systems mainly border
Comcast properties in Portland,
Ore; Seattle; and San
Francisco and Sacramento,
Calif.

Basically, Weed is searching
for a private-equity fund or
other investor that will buy
out Sandler Capital’s 90%
interest (Weed and his executives
own the other 10%) and
help fund acquisitions.

“We’re built for acquiring
and integrating cable systems
and we want to keep doing
that,” Weed said.

Sandler was an initial investor
in Wave in 2003. Wave
raised about $70 million in
initial financing in 2003, including
about $32.5 million in
equity.

Weed would not disclose
how much Wave intends to
raise.

Wave systems are fully upgraded
and offer high-speed
data and phone service but
some markets — like the
Portland area — only began
offering the triple play last
year, so there’s ample room
for growth.

Wave’s systems are adjacent
to one major cable operator
— Comcast — providing a potential
future exit strategy for
an investor.

Wave is seeking funding at
a time when capital markets
are opening up and smaller,
well-run cable systems are
coming on the market.

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