Private equity firm TPG has agreed to buy US cable providers RCN and Grande Communications for a combined fee of USD2.25 billion (including debt), people familiar with the matter have told the Wall Street Journal. Google Capital, Alphabet Inc.’s growth equity investment fund, is expected to take a minority stake in the companies which are currently owned by private equity firm ABRY Partners, sources added. The transactions could be announced as early as this week.
RCN Corporation, originally known as Residential Communications Network, was founded in 1993 and based in Princeton, New Jersey. The company – which is said to be among the top ten US cablecos in terms of subscribers – offers connectivity in the following locations: Allentown, Pennsylvania; Boston, Massachusetts; Chicago, Illinois; Washington, DC; New York City, New York; and Philadelphia, Pennsylvania. Sister company Grande Communications is based in San Marcos, Texas, and was founded in 1999.