PURCHASE, N.Y., Jan. 16, 2013 /PRNewswire/ -- BCI Broadband (BCI) and Allegiance Communications (Allegiance) today announced a definitive agreement under which a newly formed subsidiary of BCI will acquire Allegiance in a transaction expected to close early in 2013. Allegiance is an operator of non-urban Broadband systems across the midwestern states of Arkansas, Kansas, Texas and Oklahoma, where the company is based. The announcement also marks the origination of a partnership between BCI's management and BBH Capital Partners (BBHCP), a private equity fund sponsored by Brown Brothers Harriman & Co., one of the nations oldest and best-regarded financial institutions.
BCI is a newly organized, next-generation broadband MSO formed by the executive management team from pioneering cable operator Bresnan Communications. Led by President and CEO Jeffrey S. DeMond and Andrew Kober, EVP and CFO, the team is acquiring the Allegiance properties as the first transaction in an aggressive growth plan by the company.
"Since the early days of our industry, the Bresnan name stood for exceptional performance and a deep commitment to our customers, our colleagues and the communities we served," said Jeff DeMond. "The Bresnan management team remains largely intact within BCI, and that makes us extraordinarily well positioned to develop the Allegiance properties to their greatest potential. Our success across much of rural America as well as markets in Chile and Poland was built upon a distinctive balance of aggressive, yet thoughtful capital investment and a single-minded focus on the customer experience. Our team looks forward to once again creating value for our partners while providing immediate benefit to both existing and new subscribers in the former Allegiance communities."
"It has been a privilege for Allegiance Communications to be able to serve communities across the American heartland states," said CEO Bill Haggarty. "All of the Allegiance employees look forward to completing the transaction and joining with the BCI team as they bring their track record of operational success to the Allegiance footprint and work together in their communities to execute on the BCI plan to deploy next-generation broadband services including faster internet speeds, more high-definition television offerings and a broader rollout of digital voice services."
"Through this transaction, we have created a partnership with one of the cable industry's truly premier management teams, whom we have known and done business with for nearly 25 years," said Jeffrey B. Meskin, Partner of Brown Brothers Harriman & Co. and Co-Manager of BBHCP. "We share the same commitment to operational excellence that Jeff DeMond and his team have historically demonstrated and look forward to a long, rewarding partnership as we step off with this purchase of the Allegiance assets and continue to build a next-generation broadband platform."
Upon completion of the transaction and subsequent capital investment, BCI will deploy advanced broadband networks that will pass more than 150,000 homes and businesses in the Allegiance footprint with high-quality services including, modern, very high speed Internet, high definition video and voice services, across an upgraded fiber network.
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About BCI Broadband: BCI is a broadband telecommunications company founded in 2012 by the senior management team from the pioneering cable operator, Bresnan Communications. For more than 25 years Bresnan Communications was considered among the most respected cable and broadband system operators of any size, with performance metrics that were consistently among the best in the industry. BCI was formed to continue that track record of success by providing the best services and features available, in non-urban markets, including very high-speed Internet, high-definition digital video and digital voice as well as a robust focus on the business community within its markets through its Business Services division.
About Allegiance Communications: Allegiance is an American provider of cable TV, broadband Internet, and VOIP telephony services to rural and mid-size markets in Arkansas, Kansas, Oklahoma, and Texas. Allegiance Communications corporate headquarters are located in Shawnee, Oklahoma. Allegiance offers bundled services for residential customers and business services and solutions for business customers.
About BBH Capital Partners: BBH Capital Partners, a private equity fund sponsored by Brown Brothers Harriman & Co., provides friendly capital solutions to profitable, growth oriented middle market companies. BBHCP typically invests between $20 million and $75 million per platform investment, and has the flexibility to act as a control or non-control investor. BBHCP's capital is used to support a variety of transactions including management or leveraged buyouts, growth financings, recapitalizations (including dividend recapitalizations), buy and build strategies and acquisitions.
SOURCE BCI Broadband