PE-backed Pepcom acquires cable rival

Pepcom, a German cable operator owned jointly by UK-based private equity firm GMT Communications Partners and VS&A Communications Partners, has acquired a Munich-based cable television company.

Pepcom, a private equity owned German cable operator, has acquired a majority stake in Kabelfernsehen München ServiCenter (KMS). The terms of the deal were not disclosed.
 
KMS, the market leader in Munich's cable and internet operating sector, is the ninth acquisition Pepcom has made in the sector over the last 36 months. The combined operation will have a total of 400,000 subscribers.
 
Pepcom was established in 2001 by its chairman, Heinz-Peter Labonte, and London-based private equity firm GMT Communications Partners. It was created to build a major German cable television and broadband operator through acquisitions and organic growth, and is jointly owned by GMT and VS&A Communications Partners, the private equity arm of merchant bank Veronis Suhler Stevenson.
 
GMT Communication Partners is focused exclusively on the communications sector. The firm, which has managed a total of €500 million ($649 million) since 1992, is currently investing its €365 million 2000-vintage fund GMT Communications Partners II.
 
Last year it acquired a 65 percent stake in publishing company Docu Group, and sold France-based Media Publications to the Marie Claire magazine group.
 
VS&A Communications Partners invests in the media, communications and information sectors in North American and Europe. To date it has managed four private equity funds, as well as a mezzanine debt fund. Its stake in Pepcom is owned by the $1 billion VS&A Communications Partners III fund.
 
The firm's deals last year included the sale of its stake in wireless tower operator GoldenState Towers for €63.1 million in September; and, along with 3i, the consolidation of three European telephone directories businesses to create Yellow Brick Road in April.