(PrivateEquityCentral.net) VS&A Communications Partners, the private equity arm of New York-based media merchant bank Veronis Suhler Stevenson, has teamed up with London-based media investor GMT Communications Partners to invest €50m ($50.5m) in German cable operator PEPcom. Terms of the deal were not disclosed, according to a press release.
PEPcom is an acquisition vehicle that consolidates small and mid-sized cable operators in Germany. The company has made five acquisitions since last November and has more than 50,000 subscribers. The deal values those subscribers at €27m. The funding is intended to bolster PEPcom’s acquisition program. The company hopes to have 300,000 subscribers by the end of next year.
GMT Communications committed €25m, along with cable television veteran Heinz-Peter Labonte, to PEPcom in June 2001.
“PEPcom is a wonderful addition to our portfolio,” Jeffrey Stevenson, chief executive officer of Veronis Suhler Stevenson, said in the statement. “The growth capital provided by VSS will enable PEPcom to accelerate its acquisition program toward its target of 300,000 subscribers.”
In September, VS&A Communications announced it sold the pre-employment screening business of its Official Information Company portfolio company to US Investigation Services for $245m.
London-based GMT Communications Partners makes investments in the communications sector in the UK and continental Europe. The firm has €500m in capital under management. The firm’s latest fund closed in November 2000 on €365m. GMT is lead by managing director Jeffrey Montgomery, managing partner Terrence Tehranian, and senior partner Timothy Green. Other GMT portfolio companies include Cable Management Ireland, Orion Publishing, and wireless broadband company Formus Communications.
VS&A Communications Partners makes direct investments between $5m and $200m in the media, communications and information industries.