Managed Services

TowerBrook Capital Acquires IT Solutions Provider CBTS from altafiber

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In what the firm is calling a strategic move to expand its portfolio, TowerBrook Capital Partners has acquired CBTS, a provider of IT solutions and services, from altafiber. Financial information regarding the deal was not disclosed.

This is technology M&A deal number 30 that ChannelE2E and MSSP Alert have covered so far in 2024. See more than 2,000 technology M&A deals for 2024, 2023, 2022, 2021, and 2020 listed here.

TowerBrook Capital Partners, founded in 2001, is based in New York, NY, and London, UK. The company has 169 employees listed on LinkedIn. TowerBrook Capital Partners’ areas of expertise include investment management with a focus on creating sustainable value.

altafiber, formerly known as Cincinnati Bell, was founded in 1873 and is based in Cincinnati, Ohio. The company has 2,267 employees listed on LinkedIn. altafiber’s areas of expertise include providing integrated communications solutions to residential and business customers over its fiber-optic network.

TowerBrook Capital Acquires CBTS: Additional Commentary

Leigh Fox, president and CEO, altafiber, commented: 

"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. 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, CBTS, said: 

"TowerBrook Capital Partners has an impressive history of enabling transformational growth for its portfolio of companies. As a 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."

Walter Weil, Managing Director of TowerBrook, added: 

"CBTS has built a longstanding brand as a trusted technology advisor and service provider to its customers over many years. 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."

altafiber’s Strategic Offloading

The sale of the asset is part of altafiber’s overall strategic initiative, started in 2017, to reorganize into distinct operating segments, ultimately aiming to create two standalone entities: A Fiber Network Infrastructure Company and an IT Services Company. 

The transaction is anticipated to close in the second half of 2024, pending customary closing conditions, including regulatory approvals and the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

Legal advisement for the transaction was provided by Cravath, Swaine & Moore LLP to altafiber and Sidley Austin LLP to TowerBrook.