Telephone and Data Systems Inc. (NYSE: TDS) is buying Baja Broadband LLC, a cable company, for $267.5 million.
Baja provides video, high-speed broadband and voice services to residential and commercial customers in Colorado, New Mexico, Texas and Utah. The company had annual revenues of $82.4 million in 2012.
"Baja's strong network capabilities will enable us to deliver highly competitive data services, while reducing the need for future capital investment,” says David Wittwer, chief executive of TDS.
The deal, which requires regulatory approval, is expected to close in the third quarter.
TDS, headquartered in Madison, Wis., provides high-speed Internet, phone and television services through its subsidiaries U.S. Cellular, TDS Telecom and TDS Hosted & Managed Services.
The deal follows several others in the sector, including GTCR LLC’s purchase of NewWave Communications, WaveDivision Holdings LLC’s purchase of Black Rock Cable and Belden Inc.’s acquisition of PPC, a broadband-connectivity services company.