Cignas acquisition of Cox is set to be completed by the end of the year, as it looks to turn around its business.
Cignals CEO Brian Chen says the deal, which was originally set to close last month, will enable Cox to focus on the growth of its existing business and the expansion of its business into new areas.
Chen says Cox will also make further changes to its products and services, including the rollout of a new mobile phone service, and that it will begin to integrate its business model with other companies’ mobile products.
The deal is expected to close in late 2018.
Cox and Cigns share the same parent company, which is Cignan.
Chen and other Cox executives have been vocal in recent months about their concerns about the acquisition of Cignus, which Cignos parent company Verizon acquired in 2015 for $85.5 billion.
Chen also expressed support for Verizon’s efforts to buy Time Warner Cable, and Cngus CEO John Legere publicly stated that Cox had been “in the dark” on its acquisition.
Cngus had said in January that it expected to take a “substantial” charge off the existing customer base in 2019, and Chen said that Cox was “ready to go” with its plan to scale up.
The merger was expected to give Cox “significant” new revenue opportunities, Chen told investors during the company’s third-quarter earnings call.
The deal will enable Cignans new wireless broadband service to expand to more areas of the United States, including those that currently have no Cox service, Chen said.
It will also give Cox a “huge boost” to its revenue from its wireless businesses, Chen added.
Cohn told analysts on a conference call last week that the deal will “help us achieve our growth goals in the mobile market and expand to a new audience, which I believe will help us grow our revenue substantially.”
Cox has been trying to expand its wireless business since 2011, when the company acquired a number of smaller companies to bolster its wireless offerings.
The company was initially targeting to launch its own wireless service in 2019.
But after a number failed to deliver on promises to customers, Cox decided to focus its efforts on building its existing wireless services, which Chen described as a “big deal.”