Inflexion Private Equity, a UK mid-market firm, has invested in CableCom Networking, an internet and digital media service provider which operates primarily in student accommodation across the UK.
Financial details of the transaction were undisclosed. Inflexion did not respond to a request for comment at press time.
CableCom designs, installs and manages the networks required to deliver broadband connectivity and digital media services to student accommodation, social housing and key worker accommodation, usually under long term contracts.
The market for digital services in student accommodation is expected to double between 2012 and 2017, according to Inflexion . This is driven by growth in student numbers, competition between universities due to fee levels and a rise in students' expectations for better accommodation.
“Students are very demanding internet users with multiple wireless devices, high consumption of bandwidth and they all arrive on the same day each year wanting to connect in a trouble-free way,” Inflexion said.
The firm said it would remain focused on CableCom's core UK student market, but also look to expand the company’s services across Europe, starting from its existing operations in the Netherlands. Inflexion also hopes to profit from growth plans in social housing and in lower density student accommodation.
“CableCom is a terrific business that has grown strongly from a core strength in technology. It is unusual and exciting to find a business that is the leader in its field with great fundamentals, long-term contracts, and multiple routes to growth. It is right in Inflexion's sweet spot,” Simon Turner, managing partner at Inflexion, said in the statement.
Inflexion's investment in CableCom is the firm's third investment this month. Last week, Inflexion invested in CMO Compliance, a software provider for global corporations and regulators. Earlier this month, it acquired online travel company On The Beach from ISIS Equity Partners for £73 million (€86 million, $117 million). Inflexion is currently investing its £375 million buyout fund, a 2010-vintage.