Company that runs Tacoma’s Click being sold to global infrastructure management firm

Global firm Palisade Infrastructure has entered into an agreement with Tacoma’s Rainier Connect to take over ownership and operations of the local company for an undisclosed sum.

Rainier Connect has been in operation in the area for more than 100 years. It serves not only the Tacoma area, operating the city’s Click Network, but also customers in Puyallup, Eatonville and Graham in providing high-speed internet, Stream TV, phone and Boost networking services.

While the company does not disclose customer totals, an online report listed the company with more than 40,000 customers during its Click takeover.

In an announcement Tuesday, Rainier Connect said that the sale has been approved by Rainier Connect’s Board of Directors and by Palisade’s Investment committee. The deal remains subject to approval by the City of Tacoma, federal, state and local regulatory approvals and standard closing conditions.

Rainier Connect said that Palisade “will acquire 100 percent of the equity interests in Mashell, Inc., the parent company of Rainier Connect. Palisade will take on both the ownership and operations of Rainier Connect, including Rainier Connect’s rights and obligations under the Click Business Transaction Agreement with Tacoma Power.”

Brian Haynes, president and CEO of Rainier Connect, told The News Tribune in a phone interview Tuesday the move will go a long way toward the company’s growth and expansion.

“We hired the Bank Street Group to go out and help try to find financial partners so we could really ramp up our investment in the area,” he said.

“Especially since COVID, the need for broadband and more reliable, robust broadband has increased by leaps and bounds,” he added. “And we want to make sure that we’re going to be able to continue to really invest to make sure that happened in our service areas.”

Haynes estimated it would take about six months for the deal to close.

“They’re buying our network and our people. And they plan on investing in both of those,” he said.

No layoffs are anticipated and the company will likely retain its name.

Haynes plans on staying with the company “for a period of time, but not for long. I’ll be there to help transition. I’ll be involved for probably a year.”

Click and Rainier Connect

The city turned over operations of its Click municipal cable and internet service to Rainier Connect in a public-private partnership agreement in 2020.

The transfer of operational control to the company came with a 20-year agreement and two additional 10-year renewals possible. The agreement has Rainier Connect taking on the costs of maintaining the service and providing upgrades while the city retained ownership of the network itself.

As part of the agreement, Rainier Connect committed to investing $1.5 million annually in network upgrades.

Rainier Connect’s takeover of the Click operations came with some drama beyond launching at the start of the COVID-19 pandemic and widespread business lockdowns in the area.

The issues primarily stemmed from a former Click provider who lost out on winning the Click contract with the city, ultimately spawning confusion in the first days of the transition among some customers as to which company they were supposed to continue with for Click. It led to many last-minute account transfers for Rainier Connect.

More recently, Rainier Connect has been moving broadcast cable customers to its Stream TV service. That move upset some accustomed to relying on a cable box for access and who in some cases didn’t have the in-home tech and/or ability to switch to an online streaming platform.

Haynes, in Tuesday’s announcement, said: “With this transaction, Rainier Connect will be able to invest significantly in upgrading its network to the latest in fiber optic technology, bringing high-speed and reliable internet to all the communities we serve.”

He added, “Palisade takes a long-term view, which was an important factor as we wanted to ensure that our employees, customers and communities benefit from an investor with the financial ability to invest for the long-term for the benefit of all stakeholders.”

Who is Palisade Infrastructure?

Palisade Infrastructure is relatively new to the U.S. market, initially managing infrastructure assets across Australia and New Zealand. It bills itself as a global independent, specialist infrastructure and real assets manager.

Mike Reynolds is managing director, Americas, with Palisade Infrastructure.

In Tuesday’s announcement, Reynolds said: “Palisade is pleased to partner with Rainier Connect in this transaction. We believe in investing for the long-term and we see high-speed broadband as critical infrastructure driving the development and growth of connected communities.”

He added: “Having established our North American presence earlier in the year, this transaction follows Palisade’s successful investment in the Hawaiki Submarine Data Cable, which connects the Pacific Northwest region with Hawaii, Australia and New Zealand.”

Reynolds said the deal “represents our first step in the creation of a regional platform for fiber and high-speed broadband connectivity, with immediate fiber investments planned in the greater Tacoma region and several adjacent and expansion markets in the Pacific Northwest.”

Haynes is optimistic for the company’s future.

“I don’t know that there’s ever been another time where we can sell a business like ours, where all the employees have opportunities for growth,” he told The News Tribune on Tuesday.

The latest transition has him thinking about his family and the company’s extensive regional history going back to the days operating as the Mashell Telephone and Telegraph Company.

“I’m sure that they would be beside themselves to see where we got to,” he said. “It’s been a special day.”