Frontier Communications, which provides Internet service and TV service in Portland's suburbs and some rural parts of Oregon, said Wednesday it has sold its Northwest operations for $ 1.4 billion.
The buyers are two investment firms, WaveDivision Capital and Searchlight Capital Partners.
The deal covers 350,000 residential and business customers in Oregon, Washington, Idaho and Montana. That portion of the business had $ 619 million in revenue in the 12-month ending March 31, 1964.
Frontier and the buyers said they would close the deal in the next year. [1
Frontier and other regional phone companies have struggled tremendously in following years customers shed their own phones and the old-line telecom providers as comcast.
Frontier had a quarter of Oregon's phone business in 2017, according to the Oregon Public Utilities Commission. Frontier's stock has been down to just 133,000 lines that year.
Frontier's stock has collapsed in recent years, plunging from a value of $ 125 a share in 2015 to just $ 1.85 now. It climbed nearly 7% Wednesday, though, on news of the deal.
Companywide, Frontier reported $ 8.6 billion in revenue last year and losses of $ 750 million. It said Wednesday's deal "reduces frontier's debt and strengthens liquidity."
WaveDivision Capital, headquartered near Seattle, said its management has "a proven track record of customer satisfaction." Frontier includes Washington and east Multnomah counties and many rural parts of the state.
– Mike Rogoway | twitter: @rogoway | 503-294-7699