TPG Capital, the private equity arm of alternative asset firm TPG, has confirmed that it has entered into definitive agreements to acquire two regional broadband services providers, RCN Telecom Services and Grande Communications Networks, in separate transactions. Both companies have been acquired from ABRY Partners, and the deals are valued at USD1.6 billion and USD650 million, respectively. TPG will combine the assets to create a ‘top ten’ US cable company. The deal, the announcement of which was previously reported by CommsUpdate (August 15), is expected to close in the first quarter of 2017 and is subject to customary closing conditions, including regulatory approvals. TPG notes that it is partnering with Patriot Media, the management team headed by Steve Simmons and Jim Holanda that currently manages both RCN and Grande.
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.