RCN Corp., a triple-play communications services provider on Friday announced it has agreed to sell its San Francisco assets to Astound Broadband for $45 million in cash, or approximately $2,500 per customer. Astound Broadband is a cable, Internet and phone services company that serves approximately 55,000 video, data and phone customers in Concord and Walnut Creek, Calif. RCN’s San Francisco operations serve approximately 18,000 customers.
“This transaction is another key strategic milestone for RCN,” said Peter D. Aquino, president and CEO of RCN. “By divesting San Francisco, our primary property on the West Coast, we can now focus our financial and operational resources fully on our core Northeast Corridor and Chicago region. We articulated this as a main objective early on, and continue to execute toward our operational and strategic initiatives."
The transaction is expected to close in early 2007.
RCN Corp. www.rcn.com
