How Private Equity Gets Connected

Providence Equity Partners and Quadrangle Group have agreed to sell Bresnan Communications, a broadband telecommunications company, to Cablevision Systems (NYSE: CVC) for $1.365 billion. BofA Merrill Lynch and Citi are providing the debt financing for the deal, and the sell-side is being financially advised by UBS and Credit Suisse, while Cablevision is being advised by Citi. Providence and Quadrangle acquired their stake in Bresnan during a $525 million buyout of the company in 2003.

Since the beginning of 2007, 117 PE investors have invested in 142 companies in the Communications and Networking industry, according to the PitchBook Platform. Deal activity has slowed in 2010 with only 11 completed or announced deals so far, after 40 in 2009, 49 in 2008 and 61 in 2007. During the same time period, the most popular sectors with PE investors in the industry have been Connectivity Products (29 deals) and Telecommunications Service Providers (23). The most active investors in the industry include Platinum Equity with 6 deals and Kohlberg Kravis Roberts, American Capital, Skyview Capital and Quadrangle Group, each with 3 deals a piece.