Private equity firm TPG Capital has closed its previously announced acquisitions of RCN and Grande Communications. The transaction combines the two companies into the seventh largest U.S. cable company. Jim Holanda and Steve Simmons, who have run RCN since 2010 and Grande since 2013, will continue to lead the combined company.
On Aug. 15, TPG announced that it had entered into two definitive agreements to acquire RCN and Grande in separate transactions for $1.6 billion and $650 million, respectively. The combined company will serve markets in Austin, Boston, Chicago, Dallas, Lehigh Valley, New York, Philadelphia, San Antonio, and Washington, DC.
"We see significant growth potential for RCN and Grande given consumers' ever-increasing demand for digital content, which requires next-generation broadband providers that are prepared to deliver that content quickly and reliably," said David Trujillo, partner at TPG. "RCN and Grande are even better positioned to capitalize on these trends as a combined company. We are excited to announce the close of this transaction and are eager to continue working with Jim, Steve, and their team to pursue further growth."
The combination of RCN and Grande is intended to strengthen the position each company held individually. The combined entity will be able to provide more reliable communication services, superior customer service, and better value than incumbent competitors. Since partnering, RCN and Grande have started to expand and enhance operations, including launching 1 Gbps Internet service throughout its Chicago, New York City, Philadelphia, and Washington, DC, footprints.
"TPG'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 of RCN and Grande. "We look forward to working together to invest in our network, enhance our product and services, and capitalize on exciting growth opportunities."