Funds advised or controlled by Kohlberg Kravis Roberts (KKR) are acquiring a significant minority stake in RigNet from Cubera, an investment firm specialising in the Nordic private equity market.
Upon closing of the acquisition of 4.75 million shares, which is subject to customary approvals, KKR will become RigNet’s largest shareholder, holding a 27 per cent stake in the company.
RigNet is a provider of managed remote communications solutions, systems integration and collaborative applications to the global upstream energy sector. Operating across the life of the field, RigNet serves offshore and onshore drilling rigs, production facilities and energy maritime with solutions ranging from fully-managed voice and data networks to more advanced applications that include video conferencing and real-time data services. It provides services to over 1,100 remote sites in over 30 countries across six continents.
Johannes Huth, member of KKR and head of Europe, says: “We are investing in a fast-growing global market leader that has created an attractive niche at the intersection of three of our core investment themes: energy, technology, and services. All three sectors exhibit structural growth well ahead of broader GDP trends. We are excited about this addition to our investment portfolio and we look forward to supporting RigNet’s growth strategy as a patient and constructive shareholder.”
"We see KKR as a very good partner for RigNet going forward," says Jorgen Kjaernes, managing partner of Cubera. “Cubera acquired the lead investor position as part of a secondary acquisition in July 2008 and the investment has proved to be successful for our investors. Since 2008, the company has more than doubled its revenues and further strengthened its strategic position.”