Thursday, June 12, 2014

Pamlico Capital to buy South Dakota broadband networks

Charlotte-based private equity firm Pamlico Capital said Thursday it has entered into an agreement with Clarity Telecom to buy broadband networks in South Dakota from Wow Internet, Cable & Phone.

The networks in Rapid City and Sioux Falls will be bought for about $262 million in cash, Wow said in a press release.

The networks had roughly 52,700 customers who received at least one of Wow’s video, high-speed data or telephone services as of the end of March, according to the release. Last year, the networks generated revenue of approximately $81.1 million.

Clarity Telecom, which is backed by Pamlico, was formed to search for investments in rural broadband systems.

Clarity will continue to provide high-speed broadband, video and voice services to more than 50,000 residential and commercial customers in South Dakota after the deal closes, Pamlico and Clarity said.

Clarity’s management team is headquartered in Sikeston, Mo. Wow is based in Englewood, Colo.