Note: RBC Daniels served as financial advisor to Biltmore in this transaction.
PRESS RELEASE
Hicks Holdings LLC, a Dallas-based, family-owned private investment enterprise headed by Thomas O. Hicks, today announced that Hicks Equity Partners, the newly formed private equity arm of Hicks Holdings, has acquired a majority stake in Biltmore Communications, Inc., of Atlanta, Georgia, including Biltmore's wholly owned operating subsidiary, PūrDigital Media, Inc. Financial terms of the transaction were not disclosed. Hicks Holdings is the majority owner of DirecPath, LLC, a joint venture formed in May 2006 by Hicks Holdings and DIRECTV.
Hicks Holdings plans to merge Biltmore/ PūrDigital into DirecPath, and expects to do so early next year. Upon completion of that merger, the new DirecPath will be one of the nation's largest private broadband operators, and, like both DirecPath and PūrDigital today, will specialize in providing video, high-speed broadband and digital voice to condominiums and other multiple dwelling unit (MDU) residences primarily in the southeastern United States and Texas.
"This is a great opportunity for PūrDigital to be able to provide its customers with DirecPath's and DIRECTV's industry-leading video offerings, including HDTV, and for DirecPath to extend its presence into the mid-to-high-end condominium market, which it has not up to now addressed." said Thomas O. Hicks, chairman and chief executive officer of Hicks Holdings. "We are pleased to welcome Biltmore and PūrDigital Media into the Hicks Equity Partners investment portfolio and look forward to completing the merger of DirecPath and PūrDigital early next year."
"We are thrilled to partner with Tom Hicks and to be part of the Hicks Holdings family of companies," said Jeffrey C. Levy, chairman and chief executive officer of Biltmore Communications.
"Over the past five years, Biltmore Communications has distinguished itself as one of the country's premier private broadband operators ?particularly in the condominium market, where it provides high-end communication services and lifestyle amenities. We look forward to bringing Biltmore's team and assets onto the DirecPath platform," said Paul Savoldelli, vice chairman of DirecPath.
About DirecPath, LLC
DirecPath was formed in May 2006 by DIRECTV, the largest U.S. satellite broadcaster with more than 16 million customers, and Hicks Holdings, a private investment enterprise with extensive cable television and media experience in the United States and worldwide. Based in Dallas, DirecPath specializes in providing satellite video, high-speed broadband and digital voice to the multiple dwelling unit (MDU) industry. DirecPath's objective is to lead the industry in quality service for high-speed broadband and digital voice and video. The DirecPath team has extensive experience as multi-family service providers, and is committed to meeting the needs and expectations of owners, property managers and residents.
About Biltmore Communications, Inc.
Founded in 2001, Biltmore Communications is the first Digital Services Provider (DSP) in the United States to deliver data, video, voice VOIP, and public Wi-Fi services through the same fiber infrastructure over a common IP-based platform. Headquartered in Atlanta, Biltmore/ PūrDigital serves primarily high-density, multiple dwelling unit (MDU) residential and multiple tenant unit (MTU) commercial properties in the southeastern United States. Biltmore Communications is also a turnkey solution partner to developers, general contractors, and property owners for low-voltage wiring, access control, security, and audio/visual systems.
About Hicks Holdings LLC
Hicks Holdings was formed in January 2005 as a holding company for the Hicks family's sports, real estate and other assets and investments, including Major League Baseball's Texas Rangers, the National Hockey League's Dallas Stars and the Liverpool Football Club. Hicks Holdings now consists of four principal business units: Hicks Equity Partners; Hicks Sports Group; Hicks Real Estate Holdings; and Hicks Trans American Partners. In addition to Biltmore Communications, Inc. and DirecPath, LLC, the Hicks Equity Partners portfolio of corporate investments currently includes SafeMed, Inc., an emerging leader in clinical decision support systems; Latrobe Specialty Steel Company, a leading producer and distributor of specialty steels and alloys; Greatwide Logistics Services, a leading, Dallas-based third-party logistics services company; and Ocular LCD, Inc., a leading designer, manufacturer and marketer of high-performance liquid crystal displays, modules and systems.