Funds advised by BC Partners, a leading international investment firm, today announced the signing of a definitive agreement whereby BC Partners will acquire majority ownership of United Group from KKR, a leading global investment firm.

Funds advised by BC Partners, a leading international investment firm, today announced the signing of a definitive agreement whereby BC Partners will acquire majority ownership of United Group from KKR, a leading global investment firm.

KKR will retain a substantial minority stake. Financial terms of the transaction were not disclosed, and the transaction is subject to relevant regulatory approvals.

United Group is the leading media and communication services provider across South East Europe. Through significant investments in digital infrastructure, content and proprietary technology, it provides market-leading services to its customers across the region.

Over the past 18 years, the Group has expanded its presence through both organic growth and acquisitions, now employing over 3,400 staff and providing services to over 1.8 million homes.

“We are delighted to partner with United Group’s management team and KKR to support the company’s next phase of growth. United Group is a high-quality asset, with defensive growth characteristics, leading infrastructure, differentiated content and loyal customers. Its attractive and integrated business model and regional leadership position fit well for further organic and acquisitive growth,” Nikos Stathopoulos, Partner at BC Partners said.

Since its investment in 2014, KKR has supported United Group to build the company into the leading provider of communications and media services in South Eastern Europe.

United Group’s fibre and cable networks have the largest presence in the region, covering 1.82 million homes which benefit from broadband speeds over 2.6x higher than local peers and high quality local and international content.

“We are proud of the way in which United Group has developed over the last five years. It is a great example of a truly convergent operator across communications and media with market-leading product innovation and services. We will remain closely committed to the further development of United Group and are looking forward to working with BC Partners and the management team to further strengthen the company’s growth,” Jean-Pierre Saad, Managing Director at KKR said.

Steve Leroy, Group General Counsel, United Group told N1 that nothing will really change with the acquisition. „Nothing will change really in the sense that the management stays in place and the companies will keep their strategies and it‘s a continuation of our great work. The good news for the companies is that we have a very good new investor along with the previous investor who keeps a very good minority stake, a substantial one. We will benefit from new means to further invest in our networks, in our programming that people like and we will also continue to benefit from the expertise and frankly the significant investment in terms of strategy and expertise from KKR,”he said.

Asked about the effects of the acquisition for South eastern Europe, Leroy said that this is good news. “It’s a vote of vote of confidence because if you think back to when KKR invested in United Group this was the single largest private equity investment in the region and I think it helped gain the confidence of other investors and BC Partners to invest in the region,“ he said.

Morgan Stanley and LionTree are acting as advisers to BC Partners, while Credit-Suisse is advising United Group.