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US OnLine Gets $14.3-Mil Bailout in Texas Property Sale

AUSTIN-US OnLine hawks its homeport corridor in Austin and San Antonio to Grande Communications in a $14.3-million sale. As an extra bonus, US OnLine will share in Grande's revenues to help couch the Austin-based provider's fiscal losses.

By Tim Green | Updated on September 10, 2001

AUSTIN-Grande Communications Inc. has agreed to buy US OnLine’s access to apartment complexes in Austin, San Antonio and in between for $14.3 million. The deal gives Grande, which is building a high-speed communications network in the Austin-San Antonio corridor, ready entry to multiple users and it gives money-losing US OnLine relatively quick cash and a recurring revenue stream.

With US OnLine’s properties added to its own, Grande will have access to 60 to 70 apartment complexes, Rita Garza, a Grande spokeswoman, tells GlobeSt.com. The sale agreement will be phased in throughout the balance of this year and next as Grande’s network reaches US OnLine properties. The first closing is scheduled for December.

The deal also makes US OnLine, a subsidiary of Austin-based USOL Holdings, Grande’s exclusive sales and marketing services provider to apartment complexes and condominiums in the corridor. US OnLine will target new properties with 40 or more units and will receive an ongoing share of the revenue Grande generates from those properties. In turning its Austin-San Antonio properties over to Grande, US OnLine says it will continue to manage and expand its operations in its other markets of Dallas, Ft. Worth, Denver, Houston, Washington, DC and Portland, OR.

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