Wave Broadband acquired for $2.36B by TPG Capital, will combine with East Coast telecom company RCN

Photo via Wave.

Wave Broadband is combining with RCN Telecom Services to form the nation’s sixth largest internet and cable operator in a $2.36 billion acquisition.

TPG Capital acquired RCN and Grande Communications Networks in August 2016, and is now leading the acquisition of Wave. The transaction is expected to close in the fourth quarter of the year, Wave said in a press release.

Wave, which is based in Kirkland, Wash., will remain as a “branded entity.” Wave has more 7,000 miles of metro fiber across Washington, Oregon and California. Following the acquisition, Wave will continue to grow its residential customer base while also accelerating expansion of its fast-growing commercial and enterprise businesses.

“Over the last several years we have accelerated our growth substantially by expanding from our heritage of residential broadband services into enterprise grade fiber,” Steve Weed, founder and CEO of Wave said in a statement. “We are excited that our new partners in TPG and RCN recognize the value of what we have created, and share our passion for creating happy customers – we are eager to enter our next era of growth alongside them.”

RCN provides similar services to Wave, along the East Coast and in Chicago, and Grande operates throughout Texas.

The combined headcount of the three companies will be about 3,500. Wave has more than 1,400 employees, approximately 450 of whom work out of its Kirkland headquarters. Last year, Wave announced plans to double the size of its Kirkland headquarters by moving into the new Kirkland Urban project in 2018.

The companies will spend the next few months figuring out how to best leverage their respective strengths. Wave management will remain significant investors, and Weed will join the combined company’s Board of Directors.

Wave is no stranger to acquisitions, as it has been on the buying end 22 times since it was founded in 2003.