altafiber, provider of integrated communications solutions over its fiber-optic network to residential and business customers in Ohio, Kentucky, and Indiana, and TowerBrook Capital Partners (“TowerBrook”), the New York and London-based international investment firm, today announced that TowerBrook has agreed to acquire CBTS, a leading North American provider of IT solutions and services, from altafiber.
Founded in 1994 and based in Cincinnati, Ohio, CBTS is a provider of IT services and solutions focused on enterprise and upper middle market customers. Combining deep technical expertise with a full suite of flexible technology solutions, CBTS serves over 3,000 customers in all industries across the United States and Canada. The company has over 2,200 employees and 2,000 contractors on active engagements (from a network of over 40,000 contractors globally). The transaction with TowerBrook is expected to provide access to new markets and expand the company’s portfolio of products and services.
“This marks a historic day for CBTS, which has transformed from a regional IT provider into an international company. TowerBrook Capital Partners will provide the necessary investment capital to accelerate CBTS’ growth objectives,” said Leigh Fox, President and CEO of altafiber. “This transaction positions altafiber as a pure-play fiber infrastructure platform and will also help altafiber secure new funding opportunities to build fiber in the Midwest and Hawaii and increase digital equity in our existing footprint, as well as expand into new geographies with a need for gigabit connectivity to drive economic development and increase access to education, employment, and healthcare opportunities.”
Jeff Lackey, President and CEO of CBTS, said, “TowerBrook Capital Partners has an impressive history of enabling transformational growth for its portfolio of companies. As a leading provider of mission-critical IT solutions for enterprise organizations in North America, we are enthusiastic about the investment opportunities that TowerBrook Capital Partners brings to the table. Today’s announcement is tremendous news for our clients and our employees, and we are excited about this next chapter in the evolution of our company.”
“CBTS has built a longstanding brand as a trusted technology advisor and service provider to its customers over many years,” said Walter Weil, Managing Director of TowerBrook. “We look forward to partnering with CBTS’s experienced management team and employee base to further broaden the company’s service offerings and market coverage while continuing to be laser focused on providing the best customer experience possible.”
The agreement marks the realization of altafiber’s strategic plan – launched in 2017 – to organize into distinct operating segments with the ultimate goal of creating two standalone companies:
- A Fiber Network Infrastructure Company focused on building fiber to support gigabit Internet in its traditional operating territories and new geographies.
- An IT Services Company focused on supporting enterprise business customers with solutions and services including Application Modernization, Cybersecurity, IT Consulting, Cloud, Unified Communications, and Infrastructure Solutions.
To support the IT Services growth strategy, altafiber in 2017 acquired OnX Enterprise Solutions, adding meaningful scale and expanded service offerings across North America. The combination of CBTS and OnX created a North American technology company that today employs over 2,200 individuals with offices across the United States, Canada, and India.
In 2021, altafiber completed a take-private acquisition with funds managed by Macquarie Asset Management and supporting co-investors, to accelerate the fiber build across its operating footprint, and subsequently has passed over 1 million consumer and business addresses.
The transaction is subject to customary closing conditions, including expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and certain regulatory approvals, and is expected to close in the second half of 2024.
Cravath, Swaine & Moore LLP acted as legal advisor to altafiber and Sidley Austin LLP acted as legal advisor to TowerBrook.
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