NewWave is the 22nd largest mid-sized operator in the US passing 250,000 homes with 90,000 customers in rural Illinois, Indiana, Missouri and Arkansas.
The acquisition is the first in a series being pursued by RBI, which was established by GTCR and its CEO Phil Spencer in 2012. The company plans to acquire 300,000 to 400,000 cable subscribers in small to mid-sized rural markets.
“NewWave has done an outstanding job upgrading its network, moving to DOCSIS 3.0 and constructing fibre to tie their markets together,” said Phil Spencer, CEO of Rural Broadband Investments.
"These efforts give us an outstanding platform to roll out enhanced video, voice and high-speed internet services as well as advanced commercial services. In addition, NewWave has an outstanding employee base and we plan to continue to build on the great work they have done over the last several years.”
GTCR’s NewWave investment will be made from a $3.25 billion private equity fund of committed capital.
“GTCR has been evaluating numerous opportunities within the cable industry,” said Phil Canfield, managing director at GTCR. “The NewWave acquisition is an exciting opportunity and the ideal starting point from which to build our investment in the industry. We look to build a leading cable platform through increasing high-speed data penetration, growth in commercial services and accretive acquisitions."
Kirland and Ellis served as legal counsel and SunTrust Robinson Humphrey was financial advisor to GTCR. STRH and Goldman Sachs have committed to provide debt capital to support the transaction and will serve as joint lead arrangers and bookrunners. Waller capital Partners served as an advisor to RBI.
