|M/C Partners Completes Sale of Baja Broadband to Telephone and Data Systems|
Sale of M/C Portfolio Company Demonstrates Firm’s Vision in Cable and Fiber Space
M/C Partners announced the closing of the sale of the firm’s portfolio company, Baja Broadband, LLC (“Baja”), a cable company headquartered in Alamogordo, New Mexico, to Telephone and Data Systems, Inc. [NYSE: TDS]. The base all-cash consideration for Baja was valued at the previously announced $267.5 million. The transaction was first announced in February 2013.
“This successful transaction validates our premise of continued growth in broadband demand,” said Lydia Jett, Vice President, M/C Partners. “We are proud of the tremendous job the Baja management did in positioning the company for this moment, and are pleased that TDS is acquiring Baja. We are confident TDS will serve the communities and Baja’s employees well in the long term.”
M/C Partners is a private equity firm focused exclusively on the communications, media, and information technology sectors. The firm has invested over $1.5 billion into nearly 100 companies in those sectors. Companies M/C has backed include Cavalier Telephone, Corelink, Fusepoint, GTS Central Europe, ICG Communications, Legendary Pictures, Lightower, MetroPCS, NuVox, Open Mobile, Seven Networks and Zayo Group. The firm has strong institutional backing from the nation’s leading pension funds and endowments as well as a long track record of success.
M/C Partners co-led the acquisition of Baja, a full-service communications company, providing video, high-speed broadband and voice services to residential and commercial customers in Utah, Colorado, New Mexico, Texas, and Arizona. M/C Partners has invested a total of $27.2 million in Baja since 2006. The firm recruited a new management team to turn around the asset, and led its acquisition of US Cable, effectively doubling its footprint. M/C Partners was also instrumental in corporate development, acquisition and divestiture efforts in Baja. Baja has performed exceptionally, with annual EBITDA growth of 22% for the last four years.
M/C Partners takes an active role in their investments, working closely with management teams to deliver success and strong investment returns.
They specialize in the early identification of promising emerging services sectors within communications, technology and media. They proactively seek out well-positioned entrepreneurial managers and companies that fit their goals. M/C is typically the first institutional investor in their portfolio companies and in most cases, lead the round if there are co-investors. Their company building expertise frequently draws entrepreneurs and organizations that are seeking investment leadership and organizational management guidance.
M/C participates actively in the company’s growth and success as a member of the Board of Directors. The proactive role they take in assisting management has contributed significantly to their long term track record of top quartile performance. They also maintain a hands-on approach with the company’s senior executive team to provide value-added input that includes perspectives on strategy development, recruiting senior team members, capital raising, and M&A.
M/C Partners focuses primarily in the services sectors of communications, technology, and media, cultivating lucrative investment opportunities in areas such as wireless services, fiber communications services, out-of-home advertising and technology-services.