WaveDivision, Stephens and Pritzker to Buy Internet Provider EarthLink

what happened

Three investment firms, WaveDivision Capital, Stephens Capital Partners and The Pritzker Organization, have agreed to acquire the US internet provider EarthLink together with its current management. TradingView, citing the Wall Street Journal, reports that the announcement came in a statement issued on Thursday.

Trive Capital, which bought EarthLink from Windstream Holdings for $330 million, will keep a minority interest in the company. The parties did not disclose any other terms of the transaction.

EarthLink serves more than 500,000 internet and managed services customers in the US. Through partnerships with fiber and 5G operators, the company says it can deliver fiber internet to over 68 million homes nationwide. Chief Executive Glenn Goad said that under the new owners the company plans to enter new markets and serve more consumers and small businesses.

why it matters

For markets the deal looks narrow: the price is undisclosed and EarthLink is not publicly traded, so there is no direct effect on quoted stocks. It is still a sign of ownership change among smaller US internet providers, which investors tracking telecom consolidation may want to watch.

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