Baltic private equity firm Livonia Partners has announced it has teamed up with LHV Pension Funds and Ambient Sound Investments to invest in Cgates, Lithuania’s second largest fixed broadband operator by subscribers. The investor consortium led by Livonia Partners will acquire a ‘significant minority stake’ in Cgates to support the firm’s growth and to further network and technology upgrades. The transaction is subject to regulatory approval.
Vilnius-based Cgates provides cable and digital television, fixed telephony and fibre-optic broadband internet to more than 270,000 subscribers in 18 cities. The company is currently owned by Polaris Invest, the founders of Cgates’ former parent Starman, which was bought out by Elisa Corporation of Finland earlier this year.
‘The new investors support our strategy of becoming the product leader, strengthening our brand and the organisation, and seeking further consolidation opportunities. We aim to become the best in class platform to a wider audience and look forward to partnering with Livonia for their expertise in this sector,’ said Cgates CEO Petras Kirdeika.