By completing the sale of half of its stake in DukeNet Communications--the wholesale telecom service arm of Duke Energy--to Alinda Capital Partners, DukeNet becomes a joint venture of Duke Energy and Alinda.
Founded in 1994 just as the Internet began to take off, DukeNet found a name for itself as a wholesale network provider selling to carriers in the Southeast.
In June, Duke Energy and Alinda announced that affiliates of Alinda acquired 50 percent ownership piece in DukeNet in exchange for $137 million in cash plus certain purchase price adjustments.
Duke Energy's affiliate will continue to own the remaining 50 percent in DukeNet. Apart from the change in company ownership stake, DukeNet's day-to-day operations will continue to be run by current President Brad Davis.
DukeNet also this week closed $150 million credit facility has a five-year maturity, which it says will provide it with "capital for continued expansion of its telecommunications network, future acquisitions and general corporate purposes."
Alinda's purchase of a large stake in DukeNet seems to be representative of a larger trend of investment companies either acquiring a company whole or acquiring a major stake. Other notable deals following this trend include ABRY Partners purchase of RCN Corp. and Court Square's purchase of Fibertech.
For more:
- see the release
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