TDS announces entry into agreement to acquire Continuum in North Carolina

Proposed transaction supports ongoing broadband growth strategy and would expand TDS into new state.

TDS Broadband Service LLC, a subsidiary of Telephone and Data Systems, Inc., and operated by TDS Telecom (TDS®), announces its entry into an agreement to purchase substantially all of the cable, broadband, and business assets of Continuum, headquartered in Mooresville, North Carolina, for a purchase price of $80 million, subject to customary adjustment.

The transaction is expected to close in the fourth quarter of 2019, subject to the satisfaction of closing conditions, which include the approval of the transaction by citizen referenda in Mooresville and Davidson, expected to be held in November.

Continuum is a North Carolina-based internet, video, and voice operator owned by the municipalities of Mooresville and Davidson. Continuum offers high speed, fiber- and coax-based internet services in Mooresville, Davidson, Cornelius, and Huntersville, passing a total of 36,500 households and employing 70 individuals. Continuum reported generating $21 million in revenues for the fiscal year ending June 30, 2018.  

“We and Mooresville and Davidson selected TDS because of the strength of its proposal and its leadership in the industry, specifically in areas of our size and geography,” adds Robert Guth, interim CEO of Continuum. “I strongly believe TDS will carry forward our local vision and continue to deliver a next generation set of communication services to our residential and business customers today and for many years to come.” 

“We are looking forward to expanding our operations into the vibrant state of North Carolina,” said Jim Butman, president and CEO of TDS Telecom. “We expect to build off of the excellent operations and services provided by Continuum and look forward to welcoming their employees to our team.”

Employees will be offered positions within TDS to support local and national operations. TDS employs nearly 2,700 people in 30 states and currently has strong momentum in the broadband and cable industry with expansion of fiber optic networks in multiple markets across the U.S.

“We welcome the opportunity to bring Continuum into the TDS family of companies,” said LeRoy T. Carlson, Jr., president and CEO, Telephone and Data Systems, Inc. “Over the years we have been investing and building a high-quality broadband business to deliver value to our investors and customers alike over the long term.”

RBC Capital Markets, LLC served as the exclusive M&A advisor to Continuum.

About TDS
TDS Broadband Service LLC is a growing force in the cable industry. With more than 300,000 customer connections, TDS Broadband Service provides cable TV, broadband internet, and phone service to customers in Arizona, Colorado, Nevada, New Mexico, Utah, and Texas. BendBroadband, located in Central Oregon, is part of TDS Broadband Service. Visit helloTDS.com or BendBroadband.com.

TDS Broadband Service is part of TDS Telecommunications LLC (TDS Telecom), headquartered in Madison, Wisconsin.

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: the timing or ultimate completion of the acquisition, as the transaction is subject to certain closing conditions; the possibility that expected benefits may not materialize as expected; the expected financial contribution and results of the Continuum business; the successful integration of the Continuum business; and the anticipated and unanticipated expenses and liabilities related to the acquisition and the acquired Continuum business; 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 filed with the Securities and Exchange Commission.

Media Contact: DeAnne Boegli | National Public Relations Manager | TDS Telecom | 608-664-4428 | deanne.boegli@tdstelecom.com  

TDS Telecommunications LLC (TDS Telecom/TDS®) delivers high-speed internet, TV entertainment, and phone services to nearly 900 rural, suburban, and metropolitan communities across the U.S. With more than 1.2 million connections, TDS is one of the fastest growing technology companies in the United States. Powered by fiber-optics and new industry-leading technologies, TDS delivers up to 1 Gigabit internet speeds and offers internet-protocol based TV entertainment solutions along with traditional phone services. TDS also offers businesses VoIP advanced communications solutions, dedicated internet service, data networking, and hosted-managed services. Visit tdstelecom.com.

TDS Telecom, headquartered in Madison, Wis., employs nearly 2,700 people and is a subsidiary of Telephone and Data Systems, Inc. [NYSE: TDS], a Fortune 1000® company. Founded in 1969, TDS Inc. employs 9,400 people and has approximately six million connections nationwide through its businesses U.S. Cellular, TDS Telecom, OneNeck IT Solutions LLC, and TDS Broadband Service. TDS Inc. has been named to several Forbes lists, including America's Best Employers for Diversity, Best Large Employers, and Best Employers for Women. Visit tdsinc.com.

Updated February 2019

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