US-based Windstream acquired the consumer arm as part of its $1.1 billion merger with EarthLink, which was completed in February 2017. The combination gave Windstream an extensive fibre footprint spanning 145,000 route miles, along with offerings in network connectivity, managed services, voice, the Internet and other value-added services.
The deal also saw Windstream pick up EarthLink’s legacy consumer business, which provides internet access, online back-up, managed web design, web hosting and various email services to over 600,000 customers throughout the United States.
Trive Capital, a Dallas-based private equity firm that manages over $2 billion in capital, stepped in to acquire the consumer arm, promising further investment in the future.
“We are excited to partner with and support the EarthLink management team in continuing to provide great products and services available to millions of households in the United States,” commented Trive Managing Partner, Conner Searcy. “We intend to provide additional resources and access to deep industry relationships to help grow the brand in the coming years
For Windstream, it means the company can focus on its core business areas: data networking, core transport, security, unified communications and managed services to mid-market, enterprise and wholesale customers across the U.S.
It comes just weeks after Windstream agreed a deal to sell fibre assets in Minnesota and Nebraska to Arvig Enterprises in a deal worth $60.5 million.
“This transaction enables us to divest a non-core segment and focus exclusively on our two largest business units. In addition, it improves our credit profile and metrics in 2019 and beyond,” said Tony Thomas, president and CEO of Windstream, (pictured).
