Stonepeak Infrastructure to acquire Astound Broadband for $8.1bn

Stonepeak Infrastructure Partners has agreed to acquire Astound Broadband, an American cable operator company, from TPG Capital and Patriot Media Management, for $8.1 billion.

According to the New York-based private equity firm, the deal is one of the largest private equity acquisitions in the US this year, and also the largest cable deal in the last five years.

Astound Broadband is a broadband provider that offers broadband internet, digital TV, phone services, and fiber optic solutions for residential customers and businesses.

The company operates regional providers – RCN Telecom Services, Grande Communications, Wave, and enTouch Systems. Put together, the regional providers are said to serve more than a million customers with 23,000 miles of fiber across Chicago, Eastern Pennsylvania, Massachusetts, Northern California, New York City, Texas, Oregon, Washington, DC., and Washington.

Brian McMullen – Partner at Stonepeak Infrastructure Partners said: “Astound is the premier operator of critical broadband infrastructure in the United States with a long history of delivering market leading customer service and network performance to communities across the country.

“In our increasingly connected society, we believe there is an extraordinary opportunity to deliver faster speeds and greater coverage, fundamentally enabling many aspects of everyday life.”

Post-closing of the deal, Stonepeak Infrastructure Partners will be partnering with Patriot Media Management, which presently manages Astound Broadband.

As part of the partnership, Patriot Media will continue to continue to invest considerably in the broadband network and in technology.

Steve Simmons – Chairman of Patriot Media said: “As we continue to grow our platform, our core objectives remain the same: to deliver exceptional service to our customers and communities, a best-in-class experience for our employees, and outstanding results for our investors.

“Our mission and management vision are aligned with Stonepeak and we very much look forward to our partnership with them.”

The deal, which is subject to regulatory approvals and other customary closing conditions, is expected to close in Q2 2021.