WaveDivision-led group acquires EarthLink and its 500,000 customers
What's the deal? WaveDivision CapitalDealroom has a profile for this one. Try Dealroom → has partnered with The Pritzker OrganizationDealroom has a profile for this one. Try Dealroom →, Stephens Capital PartnersDealroom has a profile for this one. Try Dealroom →, and EarthLink's management team to acquire EarthLink, one of the largest internet providers in the US. The Atlanta-based company serves over 500,000 internet and managed services customers nationwide. Terms were not disclosed.
What each side brings: WaveDivision, led by broadband executive Steve Weed, brings industry leadership, while EarthLink contributes an asset-light national platform that can offer fiber internet to more than 68 million homes. The company reaches those homes through partnerships with major fiber and 5G providers rather than building its own infrastructure.
What's the endgame? The buyers plan to accelerate growth and expand EarthLink's footprint into new markets. "Together, we plan to expand our footprint into new markets and continue to bring these offers to more consumers and small businesses," said EarthLink CEO Glenn Goad.
Why now? Trive CapitalDealroom has a profile for this one. Try Dealroom → carved EarthLink out from its former public parent in 2019, working with management to expand the business and broaden its wholesale relationships. Trive will retain a minority investment as the new owners take over.
A trust play: "EarthLink has built a unique, asset light national broadband platform," said Weed, Wave's chief executive officer. He added that the platform rests on "mutual trust between EarthLink, its partners and its customers."
Bank Street GroupDealroom has a profile for this one. Try Dealroom → served as exclusive financial advisor to WaveDivision Capital.
The signal: The deal reflects how broadband providers can scale nationally without owning the network, leasing capacity from fiber and 5G operators to reach millions of homes. As internet access becomes a core utility, asset-light consumer platforms are drawing investor interest.
Read more: streetinsider.com
Image credit: Governor Glenn Youngkin
