Investors in Charter buy big chunk of Insight
Privately-held Insight Communications said it has sold a significant minority interest in the company to an investor group.
The company revealed very few terms, other than to say that the investor group was led by Crestview Partners and MidOcean Partners, and that this group now owns 42 percent of the company.
Insight was taken private  five years ago, a deal financed largely by the Carlyle Group.
After this latest deal, the Carlyle Group retains a 42 percent interest in Insight. The company's management, employees and certain other shareholders continuing to hold the remaining equity interest.
As part of the transactions, Insight will offer to purchase certain shares from its existing shareholders at the same price per share as in the Crestview and MidOcean transaction, the company said.
The most notable individual shareholders remain Insight chairman Sidney R. Knafel and Insight CEO Michael S. Willner. They will continue to hold a series of shares enabling them to elect a majority of Insight's board of directors, the company said. The company's current management team will remain in place.
The transactions will not have an impact on Insight's day-to-day business operations or its customers, the company added. The transactions are expected to be completed by the end of the second quarter.
Jeffrey Marcus, partner at Crestview Partners and head of the firm's Media and Communications Group, said, “This is Crestview's third investment in the cable sector. We recently helped lead the successful restructuring of Charter Communications, the nation's fourth largest cable operator, and continue to hold a significant stake in that company.”
Crestview and MidOcean acquired OneLink Communications in San Juan, Puerto Rico, in 2005.
Insight Communications is currently the ninth largest cable operator in the United States with approximately 775,700 customer relationships in the three contiguous states of Kentucky, Indiana and Ohio.
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