Catalyst Investors and Northwood Ventures have sold the remaining assets of Oneida Communications Group to Clearwire Corp. for an undisclosed amount. Catalyst had sold most of Oneida’s spectrum holdings to Sprint Nextel last year, but still had some wireless licenses remaining.
Growth private equity firm Catalyst Investors announced today that it has monetized the remaining assets of Oneida Communications Group through a transaction involving the sale of certain wireless licenses to Clearwire Corporation (NASDAQ: CLWR). Catalyst began acquiring wireless licenses through its ownership of Oneida in 2006 and sold the majority of Oneida’s spectrum holdings to Sprint Nextel in 2008. With this final transaction, Catalyst has delivered a 38 percent annualized return on its investment.
Oneida was funded by management, Catalyst and Northwood Ventures to capitalize on the advent of “4G” broadband wireless technology by acquiring a footprint of wireless licenses in various markets in the United States. Harold Furchtgott-Roth, former FCC Commissioner and Catalyst Operating Partner, served as the Company’s co-founder and Chairman of the Board.
“We founded Oneida recognizing the development of wireless broadband and its need for more spectrum,” said Christopher Shipman, partner with Catalyst Investors. “We are pleased to have made an investment in a quickly-consolidating industry and provide a 2X ROI for our limited partners in a very difficult market.”
“At the onset we believed we could become a significant holder of WiMax wireless spectrum,” said Bill Wilson, CEO and co-founder of Oneida. “With the financial support and management of the Catalyst and Northwood teams, we were able to acquire licenses covering more than 110 million MHz PoPs, making our goal a reality.”
The sale of Oneida’s assets is the first realization in Catalyst Investors II, a 2006 vintage private equity fund.
About Catalyst Investors
Catalyst Investors is a growth private equity firm founded in 2000. Catalyst employs a rigorous top-down research focus to identify investment opportunities in companies and industries that will exhibit strong revenue and margin growth. The firm works in true partnership with talented management teams to build long-term value. Catalyst has consistently achieved superior returns with disciplined risk management and a commitment to investor transparency. For more information, visit http://www.catalystinvestors.com/ .