Private equity firm GTCR has agreed to sell Rural Broadband Investments to cable service provider Cable One, Inc. (NYSE: CABO) for USD 735m, the company said.
The transaction is expected to close in the second quarter of 2017.
Founded in 2012, RBI is the nation´s 13th largest cable operator by homes passed, providing triple-play video, high-speed data and voice services to over 150,000 residential and commercial customers throughout rural areas of Illinois, Indiana, Missouri, Arkansas, Texas, Mississippi and Louisiana.
GTCR formed RBI in 2012, with the investment thesis to acquire incumbent cable systems in small and midsized communities in order to become the leading broadband provider in these markets. Together, GTCR and RBI acquired NewWave Communications (“NewWave”) in April 2013 as the platform investment, and subsequently completed five add-on acquisitions.
SunTrust Robinson Humphrey, Inc., Waller Capital Partners, LLC and Garrett M. Baker Advisors served as financial advisors to RBI and GTCR. Kirkland & Ellis LLP served as legal counsel and PriceWaterhouseCoopers served as accounting advisor to RBI and GTCR.
Founded in 1980, GTCR invests in growth companies in the financial services & technology, healthcare, technology, media & telecommunications and growth business services industries. The Chicago-based firm pioneered The Leaders Strategy — finding and partnering with management leaders in core domains to identify, acquire and build market-leading companies through transformational acquisitions and organic growth. Since its inception, GTCR has invested more than USD 12bn in over 200 companies.
Rural Broadband Investments acquires and invests in rural-focused cable systems serving residential and commercial customers in small-to-middle sized markets and rural geographies.