Constellation Growth Capital invests in Hibernia Atlantic
JANUARY 5, 2010 -- The investment provides Hibernia with additional capital for growth opportunities, including allowing the company to increase its network POPs in North America and Europe.
JANUARY 5, 2010 -- Hibernia Atlantic, a transatlantic high-bandwidth connectivity provider, has announced that Constellation Growth Capital (Constellation), a growth equity investor in the convergence of media, communications, and technology, invested $13.4 million in the company. Columbia Ventures Corp. (CVC) owns the remaining shares of the company.
The investment provides Hibernia with additional capital for growth opportunities, including allowing the company to increase its network points-of-presence (POPs) in North America and Europe. This investment follows Hibernia's recent acquisition of MediaXstream, a provider of transport and managed network services for the media production and broadcast industries.
Constellation is an investment fund founded by Clifford Friedman in 1998 that is now part of Highbridge Principal Strategies, a division of Highbridge Capital Management (HCM). HCM is a $21 billion global alternative asset management firm owned by JPMorgan Asset Management. Under the terms of the transaction, Friedman will join Hibernia Atlantic's board of directors.
"We are very pleased that Constellation has decided to make a strategic investment in Hibernia Atlantic," says Ken Peterson, chairman of Hibernia Atlantic and chief executive officer of CVC. "Under Cliff's leadership, Constellation has established a commitment to investing in the convergence of media, communications, and technology, sharing common goals with CVC and Hibernia Atlantic. We look forward to working together with Cliff and his team to grow our business and further expand our network reach."
"The combination of Hibernia with MediaXstream creates a growth company of scale to meet the global needs of both the media and financial services industries. It is one of the few companies which can truly meet the quality of service demands for these industries," adds Friedman. "Few legacy network providers have implemented network infrastructure that is constructed and architected with the latest production-hardened technologies, giving Hibernia a unique competitive position in the market."
"Constellation's investment and industry experience better positions Hibernia to expand our business and provide additional services and POPs for customer connectivity," says Bjarni Thorvardarson, chief executive officer of Hibernia Atlantic. "Hibernia has grown an average of 80% year-over-year for the past few years, and we look forward to what this partnership brings to the next phase of our development."
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