Private equity firm Court Square Capital Partners has entered into a definitive agreement to acquire a majority interest in US-based digital broadcast specialist Encompass Digital Media.
While financial details were not disclosed, SatelliteFinance…
Private equity firm Court Square Capital Partners has entered into a definitive agreement to acquire a majority interest in US-based digital broadcast specialist Encompass Digital Media.
While financial details were not disclosed, SatelliteFinance understands that Encompass’ financial adviser, Macquarie Capital, is providing acquisition financing to Court Square.
The transaction also provides an exit for both majority owner Wasserstein & Co. and fellow private equity fund Tennenbaum Capital Partners.
Encompass was formed in 2008 by Wasserstein alongside Encompass CEO Simon Bax and president and COO Bill Tillson. The latter two are to retain their stakes post-transaction. Originally named Broadcast Facilities Inc, the company sought to rapidly gain scale by making a series of acquisitions, purchasing a number of broadcast media facilities in the US, Asia and Europe.
The first of these was the Los Angeles-based Andrita Media Center in April 2008. It then expanded onto the US east coast through the purchase of the satellite services division of Atlanta-based Crawford Communications in January 2010. A deal that was financed by Tennenbaum.
At the end of 2010, Encompass moved to snap up the content distribution business of Ascent Media for approximately US$120m. Both Tennenbaum and Macquarie provided the necessary financing for the deal.
Munger, Tolles & Olson LLP served as Encompass’ primary legal adviser, while Dechert LLP provided legal advice to Court Square.
Commenting on the deal, Bax stated, “We have significantly improved and expanded our business since 2008 through our partnership with Wasserstein & Co, growing from our original facility in Los Angeles to a global company with substantial additional operations in Atlanta, New York, Stamford, London and Singapore. We are confident Court Square will enable us to continue to build upon our strong platform and to seize significant opportunities to provide more value to our customer base by entering new markets and expanding our services.”
Ellis Jones, chairman of Wasserstein, added: “Our investment in Encompass has been one of the most successful in our firm’s history and we wish the Encompass team continued success. Encompass has executed its strategic plan superbly and has created the preeminent provider of outsourced broadcast services. Court Square is uniquely positioned to help the company build on its achievements and continue to offer world-class services to its clients.”
A spokesperson for Encompass told SatelliteFinance that Court Square’s investment will allow the company to further its policy of expansion through acquisitions.
The transaction is subject to customary closing conditions, including regulatory clearances, and the transfer of certain FCC licenses. Subject to these, it is expected to close in the first quarter of 2012.
