Ownership of the stake was transferred to Cable One from MBI’s private equity backer GTCR. Cable One has the right to purchase the remaining interests in MBI at a predetermined multiple of earnings beginning in 2023.
The deal is expected to close before year end and is subject to adjustment for certain new debt incurrences and transaction expenses.
“This strategic investment in MBI reflects a continuation of our commitment to provide rural America with reliable high-speed internet service,” said Julie Laulis, president and CEO of Cable One.
“MBI has developed an excellent network in geographies complementary to our existing footprint and we are excited to share in its future growth. MBI’s operating model and local-first focus mirrors our own and we are pleased to partner with MBI.”
Founded in 2017, MBI was formed through a series of acquisitions, including Vyve Broadband, Northland Communications and the broadband assets of Eagle Communications.
Unified today under the Vyve Broadband brand, the company provides high-speed data, television and voice services to residential and business customers in rural markets across 16 US states. Vyve Broadband’s network passes approximately 630,000 homes.
“This transaction represents the next step of MBI’s ongoing transformation, and I am excited to have the backing of Cable One alongside GTCR,” said Phil Spencer (pictured), CEO of MBI.
“Over the last few years our team has invested significant capital to upgrade our networks, roll out Gigabit internet service, and enhance business services across our footprint. Under our new partnership, we plan to continue making significant investments in our network, our communities, and our employees.”
“We are excited by Cable One’s investment in MBI. We view Cable One as a leader in the industry with its broadband-first approach, which we have sought to emulate at MBI,” said Stephen Jeschke, managing director at GTCR.
“We look forward to our partnership and our collective continued investment to advance the broadband networks in the rural communities MBI serves.”
