Ridgemont Equity Partners, a middle market buyout and growth equity firm, has signed a definitive agreement for a majority investment in Unite Private Networks, a provider of high-bandwidth, fibre-based communications networks.
The financial terms of the transaction were not disclosed.
Unite Private Networks specialises in providing high-capacity data communications networks and related services to schools, government, carriers, data centres and enterprise business customers. It currently provides service in 12 states, primarily in the Midwest US.
“Our partnership with Ridgemont will help ensure that UPN has continued access to capital for growth and provide broader access to strategic and financial resources. The existing management team will continue to lead and manage the business and there will be no major changes to our day-to-day business operations,” says Kevin Anderson, chief executive of Unite Private Networks.
Ridgemont is a private equity firm that was formed in August 2010 and specialises in middle market buyout and growth equity investments.
“Our arrangement to partner with the management team at UPN and serve as the equity sponsor of the company is indicative of Ridgemont’s core strategy going forward as an independent firm. UPN operates within one of our historical focus industries and fits the profile of a company with strong opportunities for growth,” says George Morgan, partner at Ridgemont. “We were impressed with UPN’s consistent and profitable earnings, long-term customer relationships, and dedicated employee base. UPN has developed an efficient platform for growth and we are excited about the potential for the business to continue to expand and serve new markets.”
The transaction requires the approval of federal and state regulators and is expected to close during the fourth quarter of 2010.
Senior debt financing is being arranged by the Royal Bank of Canada and includes CoBank and Webster Bank.
RBC Daniels acted as financial adviser and Husch Blackwell Sanders acted as legal adviser to UPN. Alston & Bird acted as legal adviser to Ridgemont.
