Private equity firm TPG has agreed to acquire RCN Telecom Services and Grande Communications Networks from ABRY Partners in two separate deals valued at $1.6 billion and $650 million respectively. and plans to combine the operations to create a top ten US cable operator once the deal is completed early next year.
Combined, RCN Corp. and Grande Communications operate in a number of key markets, including Austin; Boston; Chicago; Dallas; San Antonio; and Washington, DC, as well as parts of New York and Pennsylvania. Under the ownership of ABRY Partners, RCN and Grande have been managed by Patriot Media, which will continue to run the operators in a new partnership with TPG.
"On behalf of our 2,000 plus team members, we are very eager and excited about partnering with a premier investor such as TPG to take the two companies to new levels of customer satisfaction and performance," said Patriot Media CEO Jim Holanda in a prepared statement.
The deal is the latest in a series of M&A deals that are changing the US cable services landscape. (See Meet the New Charter, Coming Soon: The New Cable Trinity and Altice Clears Hurdle in Cablevision Buy, Wins FCC Approval.)
— Ray Le Maistre, , Editor-in-Chief, Light Reading