In February 2013, M/C Partners agreed to sell Baja Broadband to Telephone and Data Systems, Inc. for $267.5 million. The sale of Baja, a cable company headquartered in Alamogordo, New Mexico, formally closed August 2013. M/C Partners invested a total of $27.2 million in the company. M/C's acquisition of Baja in 2006, and the subsequent acquisition of US Cable, were key components of M/C Partners' effort to invest in the communications infrastructure market, in order to help the industry meet the tremendous need for higher-bandwidth service for commercial and residential consumers.
- M/C Partners co-led the acquisition of Baja from Charter Communications, and invested a total of $27.2 million in the company.
- Baja is a full-service 'triple-play' communications company offering best-in-class residential and commercial video, high-speed Internet, and voice services. Baja owns and operates broadband networks in communities within Arizona, Colorado, New Mexico, Texas and Utah.
- Baja provides video, high-speed Internet, and voice services to 212,000 homes. It has 75,000 video subscribers, 60,000 data subscribers, and 16,000 voice subscribers.
- Baja has experienced an annual EBITDA growth of 22% for last four years.
- M/C recruited a new management team to turn around the asset, and led the acquisition of US Cable, effectively doubling Baja's footprint. M/C Partners was also instrumental in corporate development, acquisition and divestiture efforts.
Terms of the Deal:
The base all-cash consideration for Baja was valued at $267.5 million.