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Quadrangle to Buy Stake in Cable Operator Cebridge

Apr 25, 2006  •  Post A Comment

Quadrangle Group, a private-equity firm with a history of investing in the media industry, said Tuesday that it will pay $150 million to acquire a 17 percent stake in privately held cable operator Cebridge Connections Holdings.

As part of the investment in Cebridge, which will be made by the Quadrangle Capital Partners II fund, the private-equity firm will obtain two seats on Cebridge’s 11-member board of directors.

The investment comes as St. Louis-based Cebridge completes its purchase of cable systems from Cox Communications and Charter Communications. The Cox deal involves 869,000 basic subscribers, and is expected to close in May. The Charter transaction involves 240,000 basic subscribers and is expected to be completed in the third quarter. Once both deals are completed, Cebridge will become a top 10 cable operator, with around 1.4 million basic subscribers.

Cebridge, Cox and Charter did not provide financial terms on the cable-system acquisitions.

Cebridge was founded in 2003 by a group of cable industry veterans that included Charter co-founder Jerald Kent, who now serves as Cebridge’s CEO.

Following the completion of the Charter and Cox deals, Cebridge will change its name to Suddenlink Communications.

New York-based Quadrangle Capital Partners, which has around $5 billion in assets under management, investments in a number of media properties and currently owns stakes in cable operators Cablevision Systems and Bresnan Communications, as well as a number of broadband companies and a movie-theater chain.