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Crestview and MidOcean buy equity in Insight

Insight Communications, a cable operator in the US, says an investor group led by Crestview Partners and MidOcean Partners has purchased a significant equity position in the company from certain existing shareholders, including The Carlyle Group.

At the conclusion of this transaction and the related share repurchases by Insight referred to below, Carlyle and the new investor group each will hold an approximate 42 per cent equity interest in Insight, with the company’s management, employees and certain other shareholders continuing to hold the remaining equity interests.

The transactions are expected to be completed by the end of the second quarter.

Crestview and MidOcean have a history of partnering together in the cable sector, having jointly acquired OneLink Communications, a telecommunications company based in San Juan, Puerto Rico, in 2005.

Carlyle and company management acquired Insight in December 2005 in a going-private merger.

Jeffrey Marcus (pictured), partner at Crestview Partners and head of the firm’s media and communications group, says: "Insight is a company I have long admired, and I have the highest respect for their talented management team. We are proud to become their partners and hope to contribute to their continued success."

Michael Willner, Insight’s chief executive officer, says: "The investment by Crestview and MidOcean reflects a validation of our strategy for growth. Insight is a robust, healthy company in a dynamic industry. The addition of Crestview’s Jeff Marcus, a hugely successful cable entrepreneur, and MidOcean’s Tyler Zachem will bring new perspectives to our board as we position ourselves for a competitive and vibrant future."

Insight’s chairman of the board Sidney R. Knafel, certain related holders and Willner will continue to hold a series of shares enabling them to elect a majority of Insight’s board of directors. The transactions will not have an impact on Insight’s day-to-day business operations or its customers. The company’s current management team will remain in place.

As part of the transactions, Insight will offer to purchase certain shares from its existing shareholders at the same price per share as in the Crestview and MidOcean transaction.

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