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Fibertech to sell for ‘over $500m’
27 August 2010
Private equity owners of Fibertech are to sell the group to a different private equity company for a reported $535m
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Fibertech
private equity
Court Square
Nautic Partners
Ridgemont Equity Partners
US fibre optic operator Fibertech Networks will be sold to a private equity firm, Court Square Partners, for at least $500 million. The sellers are Nautic Partners and Ridgemont Equity Partners, which was previously a part of Bank of America.
The company, which leases fibre-optic networks to businesses and wireless carriers in the eastern US, will retain its 210 employees after the deal. Fibertech’s investors have put a total of $50 million into the company.
According to US reports, CEO John Purcell declined to comment on the price, which some put at $535 million.
The company’s current management will retain a small stake in the company, buying a 7% share. The company will stay privately held after the transaction, which is expected to close no later than December 31 2010, to avoid negative tax consequences.
Fibertech owns fibre-optic networks in 24 midsize US metropolitan markets in 11 north-eastern and mid-western states, including Rochester, Buffalo, Indianapolis and Pittsburgh. GTB