Investment fund ABRY Partners placed a $536 million offer on broadband service provider RCN Corp (RCNI.O) on Thursday. The bid, offering $15 a share in cash, is one in a string of acquisitions for private equity firms for the year.
ABRY's cash offering is equivalent to $15 a share, 22 percent above RCN Corps. Thursday’s Nasdaq closing price. Share prices for the company have since shot up above the offering price.
In addition to the $536 million, ARBY partners will also assume the total $730 million in debt for the company bringing the deal’s grand total to $1.2 billion. Despite the seemingly generous offer some analysts are suggesting there a better bid may still be in the cards for RCN Corp. The deal is slated to close by the second half of the year, but a clause permits RCN to accept any larger bid should it come along. Deutsche Bank Securities Inc and Waller Capital Partners LLC advised RCN for the deal. SunTrust Robinson Humphrey served as financial adviser to ABRY.
The deal is ABRYs first move to join the trend of private equity firms making acquisitions. TPG TPG. UL began the movement with the $4 billion purchase of IMS Health RX.N.
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