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Germany’s Pepcom changes hands

Private-equity group GMT Communications Partners and Veronis Suhler Stevenson (VSS) have sold their controlling stake in German cable operator Pepcom to Star Capital Partners for an undisclosed sum.

The two groups held an 81% stake in the cable operator, which has about 630,000 subscribers. The19% balance is held by the company’s management.

Set up as a platform investment designed to consolidate the fragmented German cable TV market, VSS and GMT built Pepcom through organic growth and the completion of 12 bolt-on acquisitions. These included the 2005 purchase of Kabelfernsehen München ServiCenter, a Bavarian cable TV and broadband operator which more than doubled Pepcom’s business. Pepcom provides triple-play services including digital, HD  and analogue TV.

Under the terms of the sale agreement, senior management will roll over a substantial part of their proceeds into the new investment vehicle controlled by Star.