TDS to acquire K2 Communications in Mead, Colorado
Once complete, this acquisition adds 1,200 addresses to TDS’ portfolio
TDS Broadband Service LLC, a subsidiary of Telephone and Data Systems, Inc., (TDS®) and operated by TDS Telecom, announces the signed purchase agreement for K2 Communications, LLC in Mead, Colo. Once complete, the deal will add more than 1,200 service addresses to the adjacent Berthoud and Johnstown serving areas, acquired by TDS in 2013.
“K2 Communications provides an excellent clustering opportunity for TDS operations in Colorado,” states Jim Butman, chief operating officer at TDS Telecom. “Situated on the I-25 corridor 30 minutes north of Denver, K2 Communications is approximately ten miles from our Johnstown location and just six miles from our Berthoud market.”
“TDS plans to connect the networks, accelerate broadband speed upgrades, and modernize video products and services quickly. We are confident this transaction will greatly benefit the current K2 Communications customers,” adds Butman.
Started in 2002, K2 Communications provides broadband, video and voice products to area residents. K2 Communications has been a solid community partner. TDS intends to build on that reputation focusing on exceptional customer service and reliable network connectivity.
Dave Kavanagh of KavaCom Consulting assisted K2 Communications with this transaction. Terms of the agreement will not be disclosed. The deal is pending regulatory approval at both the federal and local levels.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: All information set forth in this news release, except historical and factual information, represents forward-looking statements. This includes all statements about the company’s plans, beliefs, estimates, and expectations. These statements are based on current estimates, projections, and assumptions, which involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Important factors that may affect these forward-looking statements include, but are not limited to: intense competition; the ability to execute TDS’ business strategy; uncertainties in TDS’ future cash flows and liquidity and access to the capital markets; the ability to make payments on TDS and U.S. Cellular indebtedness or comply with the terms of debt covenants; impacts of any pending acquisitions/divestitures/exchanges of properties and/or licenses, including, but not limited to, the ability to obtain regulatory approvals, successfully complete the transactions and the financial impacts of such transactions; the ability of the company to successfully manage and grow its markets; the access to and pricing of unbundled network elements; the ability to obtain or maintain roaming arrangements with other carriers on acceptable terms; the state and federal telecommunications regulatory environment; the value of assets and investments; adverse changes in the ratings of TDS and U.S. Cellular debt securities by accredited ratings organizations; industry consolidation; advances in telecommunications technology; pending and future litigation; changes in income tax rates, laws, regulations or rulings; changes in customer growth rates, average monthly revenue per user, churn rates, roaming revenue and terms, the availability of wireless devices, or the mix of services and products offered by U.S. Cellular and TDS Telecom. Investors are encouraged to consider these and other risks and uncertainties that are discussed in documents furnished to the Securities and Exchange Commission.