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Ziggo Stage: LBOs and Special Situations Date of Investment: 2005 Web Site : http://www.ziggo.nl
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Ziggo is the largest cable operator in the Netherlands, providing video, broadband internet and telephony services to over 3 million cable subscribers representing an estimated 55% share of the Dutch cable market. The company was created through a series of transactions between December 2005 and January 2007 to acquire Mulitkabel, Casema and @Home, three regional cable operators which were previously the fourth, third and second largest operators in the market respectively.
Warburg Pincus’ initial investment in Ziggo was through the acquisition of Multikabel in December 2005. This investment followed a proprietary dialogue with Multikabel’s owners and management team over a period of more than 12 months. Multikabel, headquartered in Alkmaar was the fourth largest cable oepator in the Netherlands with over 300,000 cable subscribers. In September 2006 Warburg Pincus, along with other investors, acquired Casema, with 1.6 million cable subscribers. This was followed in January 2007 by the acquisition of @Home, with 1.7 million subscribers.
In June 2008 the three businesses were combined and successfully integrated under a new brand name, Ziggo. Warburg Pincus was instrumental in the creation of the new combined business and in its subsequent growth and strategic development. Since 2007 Ziggo and the predecessor companies have spent over €1bn upgrading the network and enabling improving digital TV and high speed broadband product offerings to its customers. By the end of 2010 Ziggo had grown its “triple play” subscriber base to 41% of total subscribers, and its paid digital TV customers to 31%.
