TowerBrook Capital Partners Acquires IT Services Provider CBTS to Expand Portfolio and Enter New Markets

CINCINNATI & NEW YORK--TowerBrook Capital Partners and altafiber have announced that TowerBrook will acquire CBTS, a leading North American provider of IT solutions and services. The acquisition will allow TowerBrook to expand CBTS's portfolio and access new markets. CBTS, based in Cincinnati, Ohio, serves over 3,000 customers across the United States and Canada. The transaction is expected to close in the second half of 2024.

TowerBrook Capital Partners is an international investment firm with offices in New York and London. The firm has a history of enabling growth for its portfolio of companies. CBTS, with its deep technical expertise and flexible technology solutions, has established itself as a trusted IT advisor and service provider to enterprises in North America.

Leigh Fox, President and CEO of altafiber, stated that the acquisition marks a historic day for CBTS, as it transforms from a regional IT provider to an international company. The investment from TowerBrook will provide the necessary capital to accelerate CBTS's growth objectives. Fox also highlighted that the transaction positions altafiber as a pure-play fiber infrastructure platform, enabling new funding opportunities to build fiber in the Midwest and Hawaii, and expand into new geographies.

Jeff Lackey, President and CEO of CBTS, expressed enthusiasm about the investment opportunities that TowerBrook brings to the table. He believes that the acquisition will benefit CBTS's clients and employees, and marks the next chapter in the company's evolution.

Walter Weil, Managing Director of TowerBrook, praised CBTS for building a longstanding brand as a trusted technology advisor and service provider. TowerBrook looks forward to partnering with CBTS's experienced management team and employee base to broaden the company's service offerings and market coverage.

The agreement between TowerBrook and altafiber is part of altafiber's strategic plan, launched in 2017, to create two standalone companies: a Fiber Network Infrastructure Company and an IT Services Company. The acquisition of CBTS by TowerBrook supports the growth strategy of the IT Services Company, which aims to provide solutions and services such as Application Modernization, Cybersecurity, IT Consulting, Cloud, Unified Communications, and Infrastructure Solutions to enterprise customers.

altafiber previously acquired OnX Enterprise Solutions in 2017 to enhance its IT Services offerings. The combination of CBTS and OnX created a North American technology company with offices in the United States, Canada, and India.

The transaction is subject to customary closing conditions and regulatory approvals, and is expected to be completed in the second half of 2024. Cravath, Swaine & Moore LLP acted as legal advisor to altafiber, while Sidley Austin LLP acted as legal advisor to TowerBrook.

About altafiber

altafiber, formerly known as Cincinnati Bell, delivers integrated communications solutions over its fiber-optic network to residential and business customers in Ohio, Kentucky, Indiana, and Hawai'i. The company provides high-speed internet, video, voice, and data services.

About CBTS

CBTS is a leading provider of IT solutions and services to enterprise and midmarket clients across the United States and Canada. The company offers a full suite of technology solutions, including Application Modernization, Managed Hybrid Cloud, Cybersecurity, Unified Communications, and Infrastructure solutions.

About TowerBrook Capital Partners

TowerBrook Capital Partners is an investment management firm with offices in New York and London. The firm has raised over $23 billion and focuses on delivering superior, risk-adjusted returns to its investors. TowerBrook partners with talented managers and senior advisors to transform businesses and drive better outcomes.

About Macquarie Asset Management

Macquarie Asset Management is a global asset manager with approximately $573.5 billion in assets under management. The company provides access to specialist investment expertise across various capabilities, including infrastructure, real estate, agriculture, and natural assets. Macquarie Asset Management aims to deliver positive impact for its clients.

In conclusion, the acquisition of CBTS by TowerBrook Capital Partners represents an opportunity for both companies to expand their offerings and enter new markets. The transaction is expected to benefit CBTS's clients and employees, while also supporting altafiber's strategic plan to create two standalone companies. With TowerBrook's investment, CBTS can accelerate its growth objectives and provide even better service to its customers across North America.