TPG Capital, the global private equity platform of alternative asset firm TPG, has closed its acquisitions of RCN Telecom Services and Grande Communications Networks, two US regional broadband service providers.
The transaction combines the two companies into the seventh largest US cable company and a market-leading provider of next-generation, high-speed data services for residential and business customers in six states.
Jim Holanda and Steve Simmons of Patriot Media, who have run RCN since 2010 and Grande since 2013, will continue to lead the combined company.
On 15 August, 2016, TPG Capital announced that it had entered into two definitive agreements to acquire RCN and Grande in separate transactions from ABRY partners for USD1.6 billion and USD650 million, respectively.
RCN and Grande are leading broadband providers in their respective regions, with technologically advanced networks that offer a full suite of internet, video, and phone services. The combined company will comprise an extensive network of modern, high-speed communications technology that serves markets in Austin, Boston, Chicago, Dallas, Lehigh Valley, New York, Philadelphia, San Antonio, and Washington, DC.
“We see significant growth potential for RCN and Grande given consumers’ ever-increasing demand for digital content, which requires next-generation broadband providers that are prepared to deliver that content quickly and reliably,” says David Trujillo, partner at TPG. “RCN and Grande are even better positioned to capitalise on these trends as a combined company. We are excited to announce the close of this transaction and are eager to continue working with Jim, Steve, and their team to pursue further growth.”
The combination of RCN and Grande will strengthen the position each company held individually. The combined entity will be able to provide more reliable communication services, superior customer service, and better value than incumbent competitors. Since partnering, RCN and Grande have started to expand and enhance operations, including launching one-gigabit internet service throughout its Chicago, New York City, Philadelphia, and Washington DC footprints.
“TPG’s experience building businesses and its commitment to helping companies grow make it the ideal partner as we continue to deliver high-performing broadband and provide exceptional service to our customers,” says Jim Holanda, CEO of RCN and Grande. “We look forward to working together to invest in our network, enhance our product and services, and capitalise on exciting growth opportunities.”
