Benzinga | Jun 30, 2021 11:52AM EDT

WideOpenWest To Divest Five Service Areas in Two Separate Transactions Worth $1.8B

* WideOpenWest Inc (NYSE:WOW) inked two separate agreements to sell its Cleveland and Columbus, Ohio, service areas and its Chicago, Evansville, Indiana, and Anne Arundel, Maryland, service areas for $1.125 billion and $661 million, respectively.

* The total transaction gross proceeds will be $1.786 billion.

* Cogeco Communications Inc (OTC:CGEAF) subsidiary cable operator Atlantic Broadband has agreed to acquire the Cleveland and Columbus markets. Astound Broadband (dba RCN, Grande Communications, and Wave Broadband) has decided to acquire the Chicago, Evansville, and Anne Arundel service areas.

* The divestments will enable WideOpenWest to reduce debt as it continued to execute its broadband-first strategy, including pursuing Edge-out and greenfield strategies and expanding commercial services, WideOpenWest CEO Teresa Elder said.

* The transactions are likely to close in the second half of the year.

* WideOpenWest held $2.2 billion in long-term debt as of Mar. 31, 2021.

* Price action: WOW shares traded higher by 12.30% at $20.50 in the market session on the last check Wednesday.