Impacts more than 6,000 homes in central Wisconsin and neighbors existing TDS operations.
TDS Metrocom, a subsidiary of TDS Telecom (TDS®), has entered into a purchase agreement with Merrimac Communications in Merrimac, Wis. to acquire its communications network and business. The network passes more than 6,000 homes in three counties located near neighboring communities currently served by TDS.
“This investment provides an excellent clustering opportunity for our TDS operations in Wisconsin,” states Jim Butman, chief operating officer at TDS. “Merrimac Communications services areas nestled between communities TDS already serves, which will allow us to easily connect our network and infrastructure in Dane County with Merrimac’s local operations.”
TDS plans to launch TDS TV® and further build out fiber optic connections to more customers after the purchase is complete. “We are confident this transaction will greatly benefit current Merrimac Communications customers, as well as residents and businesses in the area,” adds Butman.
Merrimac Communications provides cable TV, internet, phone, and security products to thousands of area residents and businesses in parts of Sauk, Columbia, and Dane counties. Areas served include:
- Towns of Merrimac, Caledonia, Sumpter, Prairie du Sac, Roxbury, Mazomanie, Greenfield, and West Point
- Villages of Sauk City, Prairie du Sac, and Merrimac
Recently, TDS also purchased the communications networks and businesses of Crestview Cable Communicationsin Central Oregon and K2 Communications in Mead, Colo. In September, the company launched new fiber- to-the-home services in Sun Prairie, Wis., following the purchase of Sun Prairie Utilities fiber network in May.
The Pat Thompson Company is assisting Merrimac Communications with this transaction. Terms of the agreement will not be disclosed. The transaction is pending the customary regulatory approvals at both the federal and local levels; it is expected to close in the first quarter of 2018.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: All information set forth in this news release, except historical and factual information, represents forward-looking statements. This includes all statements about the company’s plans, beliefs, estimates, and expectations. These statements are based on current estimates, projections, and assumptions, which involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Important factors that may affect these forward-looking statements include, but are not limited to: intense competition; the ability to execute TDS’ business strategy; uncertainties in TDS’ future cash flows and liquidity and access to the capital markets; the ability to make payments on TDS and U.S. Cellular indebtedness or comply with the terms of debt covenants; impacts of any pending acquisitions/divestitures/exchanges of properties and/or licenses, including, but not limited to, the ability to obtain regulatory approvals, successfully complete the transactions and the financial impacts of such transactions; the ability of the company to successfully manage and grow its markets; the access to and pricing of unbundled network elements; the ability to obtain or maintain roaming arrangements with other carriers on acceptable terms; the state and federal telecommunications regulatory environment; the value of assets and investments; adverse changes in the ratings of TDS and U.S. Cellular debt securities by accredited ratings organizations; industry consolidation; advances in telecommunications technology; pending and future litigation; changes in income tax rates, laws, regulations or rulings; changes in customer growth rates, average monthly revenue per user, churn rates, roaming revenue and terms, the availability of wireless devices, or the mix of services and products offered by U.S. Cellular and TDS Telecom. Investors are encouraged to consider these and other risks and uncertainties that are discussed in documents furnished to the Securities and Exchange Commission.