Tonight, in separate meetings, the Town Boards of Mooresville and Davidson reviewed an Asset Purchase Agreement from TDS Broadband Service LLC and approved the sale of Continuum, pending voter approval in November, in the amount of $80 million.
The Towns initiated the sale of Continuum in March 2019 based on the current success of the asset and the Towns’ desire for financial flexibility to invest in infrastructure and other projects. The Towns retained RBC Capital Markets, LLC as the exclusive financial advisor for the sale and Troutman Sanders and Robinson Bradshaw as legal counsel.
The first round of offers was received on April 23. Six offers (all $70M+) were selected to move to the second round of offering. The second round of offers was received June 13, ranging from $60 - $80M. On June 18, RBC gave three offerors three days to sharpen their financial offer and Asset Purchase Agreement. On June 21, two offerors submitted their final offers to RBC. On June 24, one offeror submitted their final bid to RBC. Final offers were $75M - $80M. With the highest and most responsive offer received by the deadline, TDS was selected on July 1 as the proposed buyer for Continuum. The Towns entered into an exclusivity agreement, dated July 3, as part of the contractual sales process.
“We are pleased there was such a strong business interest in the purchase of Continuum,” said Mooresville’s Interim Town Manager Ryan Rase. “While many would have just focused on the dollars, we took a holistic approach and looked critically at finances, as well as industry reputation and strong community commitment.”
Continuum 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.
“After a very intensive sales process, we are pleased to welcome TDS to our communities,” said Davidson Town Manager Jamie Justice. “We look forward to them joining us in providing services to our residents and job opportunities for this area.” Per NC State Statute, a referendum will be on the November ballot asking eligible Mooresville and Davidson voters to approve the sale of Continuum. Pending voter approval in November, transfer of ownership is expected to occur by the end of 2019.
Originally called MI-Connection, Continuum was established in 2007 as an interlocal agency by North Carolina legislature and the towns of Mooresville and Davidson in order to build an advanced communication network that better served their communities.