Acquisition represents the largest broadband & telecom transaction in the past five years
New York, N.Y. and Princeton, N.J. – August 19, 2021 – Stonepeak, a leading alternative investment firm specializing in infrastructure and real assets, today closed its previously announced $8.1 billion acquisition of Astound Broadband (Astound), the sixth largest U.S. cable operator in the United States, operating leading regional providers RCN, Grande Communications (Grande), Wave Broadband (Wave) and enTouch Systems (enTouch).
Astound, led by the Patriot Media management team, has built modern, high-speed communication networks for residential and businesses customers of all sizes. The company offers gigabit speeds serving eight of the top ten largest metro areas throughout the United States. RCN, Grande, Wave and enTouch together serve over one million customers with 23,000 miles of fiber across Chicago, Eastern Pennsylvania, Massachusetts, New York City, Northern California, Oregon, Texas, Washington, DC., and Washington state.
Since the announcement of the transaction with Stonepeak in November 2020, Astound has continued to execute on strategic growth initiatives including signing two additional transactions that bolster the company’s capabilities in key markets: the acquisition of WideOpenWest’s Chicago, Indiana, and Maryland markets, and the acquisition of Harris Broadband, a leading provider of fiber to the home services across central Texas. Stonepeak will partner closely with the Astound management team to continue this positive momentum as the company remains active across multiple growth areas, including organic network expansion, additional M&A opportunities and efforts to accelerate its residential and commercial segments.
“Stonepeak’s experience building businesses and its commitment to helping companies grow make it the ideal partner as we continue to deliver high-performing broadband and provide exceptional service to our customers,” said Jim Holanda, CEO. “We look forward to working together to invest in our network, continuing to enhance our product and services, and capitalize on exciting growth opportunities.”
Patriot Media chairman and industry veteran Steve Simmons added, “As we continue to expand our platform, our core objectives remain aligned to deliver exceptional service to our customers and communities, a best-in-class experience for our employees, outstanding results for our investors, and top tier growth.”
“The acquisition of Astound marks Stonepeak’s second investment in residential broadband in North America and represents the largest asset in Stonepeak’s global communications portfolio, which includes eight digital infrastructure investments to date,” said Brian McMullen, Senior Managing Director at Stonepeak. “Broadband plays a critical role in today’s economy and society, particularly as the need for faster speeds and greater coverage continues to grow. We are excited to close this transaction and to continue working with Jim, Steve and the Patriot Media team to further accelerate Astound’s growth and provide greater access to critical digital infrastructure across the country.”
The Stonepeak digital infrastructure portfolio includes data center, fiber, residential broadband, small cell and tower assets across the Americas, Asia and Europe with cumulative enterprise value and equity commitments of more than $30 billion.
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About Astound (RCN, Grande Communications, Wave Broadband and enTouch)
Together, RCN Telecom Services, LLC (www.rcn.com), Grande Communications (www.mygrande.com), Wave Broadband (www.wavebroadband.com) and enTouch Systems (www.entouch.net) form the sixth largest US cable operator and provide award-winning high-speed internet, broadband communications solutions, digital TV, phone services and fiber optic solutions for residential and business customers across the United States. Together, RCN, Grande, Wave and enTouch serve areas of Chicago, Eastern Pennsylvania, Massachusetts, New York City, and Washington, DC. (RCN); Texas (Grande Communications and enTouch Systems) and Northern California, Oregon and Washington (Wave Broadband).
Stonepeak is a leading alternative investment firm specializing in infrastructure and real assets with approximately $37 billion of assets under management. Through its investment in defensive, hard-asset businesses globally, Stonepeak aims to create value for its investors and portfolio companies, and to have a positive impact on the communities in which it operates. Stonepeak sponsors investment vehicles focused on private equity and credit. The firm provides capital, operational support, and committed partnership to sustainably grow investments in its target sectors, which include communications, energy transition, power and renewable energy, transport and logistics, and water. Stonepeak is headquartered in New York with offices in Houston, Austin and Hong Kong. For more information, please visit https://stonepeakpartners.com/.
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