GTCR has completed its previously announced acquisition of NewWave Communications, a multiple system cable operator, from Pamlico Capital.
“GTCR has been evaluating numerous opportunities within the cable industry,” said Phil Canfield, Managing Director at GTCR. “We were very fortunate to have former FCC Chairman Reed Hundt working with us as we developed our investment thesis and sourced the team. The NewWave acquisition is an exciting opportunity and the ideal starting point from which to build our investment in the industry. We look to build a leading cable platform through increasing high-speed data penetration, growth in commercial services and accretive acquisitions.”
GTCR’s investment in NewWave was made from GTCR Fund X, a private equity fund with $3.25 billion of committed capital. SunTrust Robinson Humphrey and Goldman Sachs Bank USA provided the debt capital to support the transaction.
This acquisition was completed through GTCR’s platform portfolio company Rural Broadband Investments (RBI). GTCR and Phil Spencer, CEO of RBI, formed RBI in 2012 to acquire broadband infrastructure assets in small and mid-sized communities. The acquisition of NewWave Communications is the first in a series of acquisitions being pursued by RBI, which plans to acquire 300,000-400,000 cable subscribers in small-to-mid sized rural markets to deliver services to residential and commercial customers. RBI is headquartered in Overland Park, KS (www.ruralbroadbandinvestments.com).
NewWave is the 22nd largest multiple system operator (MSO) in the country passing approximately 250,000 homes and serving over 90,000 customers in rural Illinois, Indiana, Missouri and Arkansas. The company is based in Sikeston, MO (www.newwavecom.com).
“The acquisition of NewWave Communications is a great first step and provides us with an excellent platform to build upon,” said Mr. Spencer, CEO of Rural Broadband Investments. “NewWave has done an outstanding job upgrading its network, moving to DOCSIS 3.0 and constructing fiber to tie their markets together. These efforts give us an outstanding platform to roll out enhanced video, voice and high-speed internet services as well as advanced commercial services. In addition, NewWave has an outstanding employee base and we plan to continue to build on the great work they have done over the last several years.”
Waller Capital Partners served as an advisor to Rural Broadband Investments. Kirkland & Ellis served as legal counsel and PriceWaterhouseCoopers served as accounting advisor to GTCR. SunTrust Robinson Humphrey served as exclusive financial advisor to GTCR.
GTCR pioneered the investment strategy of identifying and partnering with executives to acquire and build companies through a combination of acquisitions and internal growth. The firm currently has nearly $7 billion in assets under management. Since its inception in 1980, GTCR has invested more than $10 billion in over 200 companies. GTCR is based in Chicago (www.gtcr.com).
© 2013 PEPD • Private Equity’s Leading News Magazine • 5-14-13
