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Broadband provider RCN to sell for $1.2bn
08 March 2010
Private equity company Abry Partners is to buy US cable and broadband operator RCN for $531 million plus $730 million debt
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RCN
Abry
private equity
Neon
Deutsche Bank
Waller
US broadband services provider RCN is being sold to media and communications private-equity firm, Abry Partners, for nearly $531 million. The buyer will also assume RCN’s debt, which was nearly $730 million as of September 30 2009, valuing the deal at $1.2 billion.
The seller has an option to seek other bids until April 14 2010. The deal is expected to close in the second half of 2010.
Deutsche Bank Securities and Waller Capital Partners are advising RCN, while SunTrust Robinson Humphrey is advising Abry.
RCN, headed by CEO Peter Aquino, provides high speed internet and voice services to residential and small businesses in areas including Philadelphia, New York, Boston and Chicago. RCN’s rivals include Abovenet and Mediacom Communications. In 2007 the company bought Neon Communications, which owns a fibre network in the north-east US, for $260 million.
Boston-based Abry Partners, which manages nearly $2.75 billion in cash, specialises in media and information technology companies. GTB