TPG Capital has closed its previously announced acquisitions of cable companies RCN Telecom Services LLC and Grande Communications Networks LLC. The seller was ABRY Partners. A previous report on this news item pegged the purchase amount at $2.25 billion.
FORT WORTH, Texas and SAN FRANCISCO – February 1, 2017 – TPG Capital, the global private equity platform of alternative asset firm TPG, today closed its previously announced acquisitions of RCN Telecom Services LLC (RCN) and Grande Communications Networks LLC (Grande), two regional broadband service providers. The transaction combines the two companies into the seventh largest U.S. 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 August 15, 2016, TPG Capital announced that it had entered into two definitive agreements to acquire RCN and Grande in separate transactions from ABRY partners for $1.6 billion and $650 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,” said David Trujillo, Partner at TPG. “RCN and Grande are even better positioned to capitalize 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 leading 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, D.C. 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,” said Jim Holanda, CEO of RCN and Grande. “We look forward to working together to invest in our network, enhance our product and services, and capitalize on exciting growth opportunities.”
For more than a decade, TPG has been engaged with the changing landscape of content creation, distribution, and consumption. The firm has partnered with companies poised to take advantage of growth trends in the space, such as leading sports and entertainment intermediary CAA; live entertainment company Cirque du Soleil; leading online education platform Lynda.com; leading music streaming service Spotify; and motion picture, television, and digital content studio STX. Additional investments made by TPG in the internet and digital media space include Airbnb, AXS, Ipsy, RentPath, and Uber.
TPG is a leading global alternative asset firm founded in 1992 with more than $74 billion of assets under management and offices in Austin, Beijing, Boston, Dallas, Fort Worth, Hong Kong, Houston, Istanbul, London, Luxembourg, Melbourne, Moscow, Mumbai, New York, San Francisco, São Paulo, and Singapore. TPG’s investment platforms are across a wide range of asset classes, including private equity, growth equity, real estate, credit, and public equity. TPG aims to build dynamic products and options for its investors while also instituting discipline and operational excellence across the investment strategy and performance of its portfolio.