TOWN INFORMATION

Towns Seek Buyer for Continuum

by | Mar 18, 2019 | News, Top Left Red Box, Town Information

MOORESVILLE, NC– A recent review of town-owned communications asset, Continuum, has motivated the elected officials of Mooresville and Davidson to put the successful company on the market.

“The time is right to sell,” said Mooresville Mayor Miles Atkins. “Continuum has grown to become a competitive digital network. Selling would give us long-term financial flexibility that lets us turn our focus toward building infrastructure that paces our booming population.”

The Towns of Mooresville and Davidson have retained RBC Capital Markets as their exclusive financial advisor for the sale that is expected to garner significant interest from qualified buyers. If the Towns receive a satisfactory offer, the citizens of Mooresville and Davidson will be asked to approve the sale on the November ballot, per state statute.

Originally called MI-Connection, the company 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. By acquiring the assets of Adelphia Communications Corporation, and bringing on board cable industry veteran, CEO David Auger, Continuum has since grown revenue by 50%, increased EBIDA (earnings before interest, depreciation and amortization) by 400% and built a 1GHz digital network with extensive fiber deployment serving more than 17,000 residential and business customers in the towns of Mooresville, Davidson and Cornelius. In 2016, Auger led a rebranding of the company, now Continuum, to better reflect their range of products and continued commitment to core community values.

“No matter how you might feel about local government owning a cable company, we should all feel extremely proud of what we’ve managed to build since the purchase,” said Davidson Mayor Rusty Knox.

Not only has Continuum shown remarkable performance in an industry where growth isn’t always typical, they’ve managed to do so with a team of 72 employees offering 100% local service and support. “We’ve done the work and it shows,” said Auger. “We put the fiber in the ground when no one else would. We invested in local people and premium products. Our remarkable performance makes this purchase a no-brainer for someone to take what we’ve built and run with it.”

Facts about Continuum:

  • Website is www.ourcontinuum.com
  • State-of-the-art Video, Internet and Voice services including residential, business and enterprise solutions.
  • Service and support is 100% local, 24/7
  • Continuum has 72 Employees
  • CEO is David Auger, a 30-year cable veteran

Sale of Continuum FAQs

Why now?
Mooresville:
The time is right. Continuum has grown to become a competitive digital network, making it
attractive to potential buyers. Continuum’s value, coupled with the Town of Mooresville’s
desire to invest in new infrastructure for its growing population, makes it a very good time
to pursue a sale.
Davidson:
The time is right. Continuum has grown to become a competitive digital network, making it
attractive to potential buyers. The Davidson Board of Commissioners’ 2018-2019 Strategic
Plan has a focus on sound financial management and examining of future options for
Continuum.

Who initiated the sale?
The Towns initiated the sale process based on the ongoing success of Continuum and our
desire to have financial flexibility with the ability to invest in new infrastructure and other
projects.

What is the likelihood Continuum sells?
Our potential customer base is growing fast, and our network has never performed better.
The business is in excellent shape and overall market conditions are highly favorable. We
expect there will be vibrant competition to purchase Continuum. That said, market
conditions can change, and it is possible we will not receive a satisfactory offer.

What happens if Continuum doesn’t sell?
If Continuum doesn’t sell, then it will continue to grow and become an even stronger
community asset. The company is planning many new and exciting technologies this year,
including introducing the fastest internet speeds in the area, installing even more fiber to
the home and expanding into more neighborhoods.

What impact might this sale have on me as a taxpayer?
The Towns’ Board of Commissioners do not anticipate a change in the tax rate related to
the sale of Continuum.

What is the potential timeline for this process?
The Towns of Mooresville and Davidson have retained RBC Capital Markets as their
exclusive financial advisor for the sale. They have a robust process for outreach and
marketing to potential buyers and negotiation of a deal. The anticipated date of a
completed transfer of ownership is the end of November 2019.

How is the value of the system calculated?
Continuum is a growing asset, which is a rare accomplishment in this business, and we
have continued to make significant investments in its infrastructure and service offerings.
As a result, we expect it to achieve a very strong valuation. The value of the business will be
determined by an active, full bidding process and we expect many interested buyers.

Who do you predict will make a bid?
We will be soliciting bids from many parties, including service providers similar to
Continuum, as well as financial investors. We expect a high level of interest from both
categories.

Will town residents get to vote on the sale?
Yes, if the towns accept a bid, per state statute, a referendum will be on the November
ballot asking Mooresville and Davidson voters to approve the sale of Continuum.

What will happen to Continuum between March and November while it is on the
market?
Continuum customers will continue to receive their voice, internet and video services,
pricing, and customer service to which they are accustomed during this period.

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