NewSpring Capital has led an $18 million mezzanine investment in SpeedConnect in partnership with Kemper Corporation, existing investors and management.
SpeedConnect will use the proceeds of the mezzanine investment to complete the acquisition of CommSpeed, an Arizona-based wireless Internet service provider, expand rollout of their LTE network and support other growth initiatives. As part of the financing, Jim Vaughn, the former CEO of JAB Wireless, will join the company’s Board of Directors.
SpeedConnect is a wireless Internet service provider operating in over 50 communities and nine states; Michigan, Iowa, Illinois, Nebraska, South Dakota, Idaho, Montana, Texas and Arizona. The company offers high-speed broadband Internet connections to residences and businesses using the U.S. Federal Communications Commission’s licensed radio spectrum in the 2.5 GHz (Band 41) spectral space. SpeedConnect, owned by Robert Liggett and John Ogren (CEO), was founded in 2001 and is headquartered in Frankenmuth, MI (www.speedconnect.com).
“Investments in the network and service are instrumental in our growth planning. The strategies include an aggressive build out of the most advanced LTE network available,” said Mr. Ogren. “LTE is the most efficient broadband technology and provides a smooth, continuous and rapid Internet user experience, so our customers can browse the web, stream content, or download a movie at blazing-fast speeds. I am very excited to be joined by NewSpring in helping to fund the next phase of SpeedConnect’s growth. Their partnership approach to supporting the operational and financial growth of the Company will help to more quickly enhance our value.”
“We couldn’t be more excited to partner with John Ogren and his team at SpeedConnect,” said Anne Vazquez, NewSpring Principal. “We’ve been impressed with their ability to grow to one of the largest providers of fixed wireless broadband in the country. Under Mr. Ogren’s leadership, we look forward to SpeedConnect’s continued growth through delivering best-in-class broadband speeds and market-leading customer service.”
NewSpring Capital is a provider of private equity capital through a family of funds including NewSpring Ventures, NewSpring Health, and NewSpring Mezzanine. NewSpring Mezzanine provides mezzanine capital for expansion stage and buy-out opportunities for Mid-Atlantic based companies that are active in the business services, health care, information technology, and specialty manufacturing sectors. The firm has offices in Radnor, PA; Short Hills, NJ; and Washington, DC (www.newspringcapital.com).
2014 PEPD • Private Equity’s Leading News Magazine • 12-5-14