American Broadband Holding Company, a provider of broadband access in rural markets across the United States, announced that it has entered into a definitive agreement to be acquired by investment funds affiliated with Madison Dearborn Partners, LLC, a private equity firm based in Chicago, and Catania ABC Partners, a private company founded by industry executive Rich Parisi.
“This is an exciting moment for our company and an investment partnership that we believe will propel American Broadband’s future success,” said Jane Eudy, founder and chairman of the board of American Broadband. “In Rich and MDP, we have found the right industry experts and investment partners with both extensive telecommunications experience and a clear desire to invest in the future growth of our network. I am tremendously proud of the business we’ve built and look forward to witnessing the bright future ahead for our company.”
Succeeding Eudy, Parisi, who served as a member of American Broadband’s Board of Directors for many years, will assume the role of chief executive officer once all necessary regulatory approvals are obtained and the transaction closes. The company’s remaining senior team members will continue to lead the business in their current capacities.
“Jane and her team have built an industry leader with ample room for growth,” said Zaid Alsikafi, managing director and head of telecom, media and technology services at MDP. “We are thrilled to partner with American Broadband as ABB explores new opportunities for market expansion and accelerates investment in the company’s existing network. In partnership with Rich, we look forward to driving continued growth for American Broadband over the long term and enhancing rural broadband access for customers nationwide.”
Completion of MDP’s and Catania’s investment in American Broadband, which is expected to occur in the second quarter of 2021, is subject to federal and state regulatory approvals and the satisfaction of other customary closing conditions.
American Broadband provides phone, video and broadband service to customers in rural communities in Nebraska, Missouri, Alaska, Louisiana and Texas.
Pam Adams, ABB marketing manager, said Blair customers will see no changes to their current services as a result of this move.
“This is a financial transaction for ownership of the company, which also includes properties in Louisiana, Texas, and Alaska,” she said. “Catania and MDP plan to aggressively invest in continuing to upgrade the existing network and expand ABB’s broadband offering in new markets. What this will translate to in the future are things such as accelerating the growth of gig speeds in our communities and pursuing expansion into additional rural markets.”