Grande Communications, a division of Astound Broadband, which is backed by Stonepeak Infrastructure, today announced the acquisition of Harris Broadband LP, a provider of fiber-to-the-home (FTTH) services in Central Texas.
Harris Broadband is owned by the Harris family as well local private investors from Brownwood, Texas. Additionally, the company has debt financing from a Texas community bank, Citizens National Bank.
Finally, the transaction will close later in 2021.
Harris Broadband – Overview
Harris Broadband was founded in 2005 and offers internet, video, and voice services over fiber-to-the-home (FTTH) technology in rural Texas. Specifically, the company serves the Central Texas cities of Brownwood (population ~19k) and Early (population ~3k).
Harris Broadband has 6.0k+ customers and 12.5k homes passed with fiber, equivalent to a strong 48% penetration rate. The company’s network comprises 150 route miles of fiber plant.
Harris Broadband is led by Philip Harris, the company’s founder, President, and Chief Executive Officer.
Harris Broadband holds pole and easement right-of-way agreements in its operating markets. For example, the company has a 15-year franchise with the City of Early. Additionally, Harris Broadband has cooperation agreements with Texas utilities, local governments, and the Texas Public Utility Commission (PUC).
Transaction Rationale – Grande Communications Acquires Harris Broadband
Harris Broadband represents an accretive extension of Astound Broadband’s existing Grande Communications footprint in Texas. Specifically, Grande Communications currently operates in Dallas, Austin, San Antonio, San Marcos, Corpus Christi, Waco, Temple, Houston, and Midland/Odessa.
The combination of Grande Communications and Harris will bring broadband expansion opportunities to underserved markets. Indeed, these include the communities surrounding Brownwood and Early, Texas.
Astound Broadband’s broader network and resources will also enable the combined company to provide more services to additional customers throughout Central Texas. Benefits include greater technical expertise, operational management systems & processes, and financial support for investment.
Overall, Grande Communications offers internet speeds of 1 gigabit per second in all its Texas service areas, to both home and business customers.
Astound Broadband – Overview
Astound Broadband is the sixth largest U.S. cable operator through its subsidiaries RCN Telecom Services, Grande Communications, Wave Broadband, and enTouch Systems. Specifically, these companies serve the following states:
- RCN: Massachusetts, Chicago, Pennsylvania, New York City, and Washington, D.C.
- Grande and enTouch: Texas
- Wave Broadband: Washington, Oregon, and California
Today’s announcement closely follows Astound Broadband’s agreement to acquire WideOpenWest’s Chicago (Illinois), Evansville (Indiana), and Anne Arundel (Maryland) service areas for $661m.
Transaction Advisors – Grande Communications and Harris Broadband
Grande Communications’ legal advisor was Seyfarth Shaw.
Harris Broadband’s financial advisor was Houlihan Lokey, who ran the sale process.