United Private Networks (UPN), a Midwest-based regional fiber-based provider, has decided to put its trust in a larger partner Ridgemont Equity Partners which will acquire a majority stake in the company.
Although neither company would disclose the financial terms of the deal, UPN's existing management team and day-to-day operations will remain unchanged. Currently operating in 12 states, UPN has primarily focused on providing data communications networks and related services to schools, government, carriers, data centers and enterprise business customers
UPN sees the Ridgemont pact as a means to scale the company. "Our partnership with Ridgemont will help ensure that UPN has continued access to capital for growth and provide broader access to strategic and financial resources," said Kevin Anderson, CEO of UPN in a release.
Set to be completed in Q4 2010, the deal still needs the obligatory federal and state regulatory approvals.
Private investment firms have been busy snapping up large pieces or buying regional service providers operators outright lately. Over the past week, ABRY Partners completed its acquisition of RCN, while Court Square bought up regional fiber service provider Fibertech.
- see the release here
Fibertech sold to Court Square for $500 million
Abry partners to acquire RCN for $1.2 billion