Livingstone is pleased to announce the exciting partnership between our long-standing client, KGPCo, the leading communications infrastructure services and product supply chain provider in the U.S., and Circet, Europe’s largest communications network services provider, which is backed by its management and Intermediate Capital Group (ICG).
The combination of Circet’s existing network infrastructure services scale and market leading presence across Europe with KGPCo’s extensive network infrastructure services and supply chain services throughout the United States will create one of the largest and most experienced network infrastructure services providers in the North American and European communications markets, with combined global network infrastructure services revenue of $3.1 Billion USD, in addition to KGPCo’s large supply chain and product business revenue.
KGPCo and Circet currently support the largest communications service providers with operations across the United States and Europe, supported by over 13,000 employees, over 200 regional facilities, and decades of experience and trust that drives significant value to existing customers, supplier partners, and the industry overall.
Circet will acquire a majority stake in KGPCo Services (formerly BlueStream Professional Services) alongside KGPCo’s founders (the Putrah family) and the management team.
Through this partnership, KGPCo Services will focus on accelerating its expansion throughout the North American communications infrastructure services industry, including design, engineering, construction, and maintenance of wireline and wireless networks. Circet will bring its expertise in managing large network services projects, especially for fiber construction where it has extensive experience associated with the massive deployment phase taking place throughout Europe.
Circet and KGPCo intend to achieve strong organic growth on the back of the unprecedented demand in the United States for deployment of fiber (FTTx), wireless networks (5G), and cloud solutions, and to implement additional external growth with the support of ICG.
To further strengthen the Circet-KGPCo partnership, Circet will also become a minority shareholder of KGPCo’s supply chain and product business, branded KGPCo, which will continue as a provider of advanced supply chain and logistics services, product sourcing, cloud engineering, and integration services, and will remain a certified Women’s Business Enterprise (WBE). Circet and KGPCo will continue to utilize KGPCo’s trusted supply chain expertise to offer customers a combined product and services turn-key deployment approach that is highly efficient and unique to the industry.
Livingstone acted as a financial advisor and Felhaber Larson acted as legal counsel to KGPCo. Lazard acted as financial advisor and Kirkland & Ellis LLP acted as legal counsel to Circet.
The consummation of this transaction is subject to regulatory approval.
Over a decade-plus, Livingstone has previously advised KGPCo on numerous transformational transactions, including the acquisitions of Embarq Logistics from Embarq Corporation (now known as CenturyLink), the professional services business of TE Connectivity (NYSE: TEL), Hutton Communications, and TriNet Communications.