Inflexion backs the buyout of CableCom
Inflexion today announces that it has completed the buyout of CableCom Networking Limited (“CableCom”), the leading provider of managed internet and digital media services to high density, principally student, accommodation throughout the UK.
CableCom designs, installs and manages the networks required to deliver broadband connectivity and digital media services to student accommodation, social housing and key worker accommodation under long term contracts. It has grown rapidly through a focus on technical excellence, high levels of customer service and by maintaining strong partnerships with investors in the sector.
The main market within which CableCom operates, digital services to commercially provided purpose built student accommodation, is expected to double the number of student rooms available between 2012 and 2017. This is being driven by growth in student numbers, competition between universities due to fee levels and higher standards of accommodation being expected by students. It is also a highly attractive asset class for property investors with strong yields, minimal voids and demand well in excess of supply.
Students are very demanding internet users with multiple wireless devices, high consumption of bandwidth and they all arrive on the same day each year wanting to connect in a trouble-free way. CableCom has built its business by investing in both the technology and customer support to cope with this uniquely challenging user base and provide a hassle-free solution for the accommodation providers.
Whilst its core UK student customer base will remain the focus of the business, CableCom will also seek to expand its services across Europe, starting from its existing operations in the Netherlands. There are other growth opportunities in social housing and in lower density student accommodation that will also be accelerated with Inflexion’s backing.
Simon Turner, Managing Partner at Inflexion, commented: “CableCom is a terrific business that has grown strongly from a core strength in technology. We were especially drawn to working with Mark and his team who are top quality. Equally it is unusual and exciting to find a business that is the leader in its field with great fundamentals, long term contracts, and multiple routes to growth. It is right in Inflexion’s sweet spot.”
Mark Burchfield, CEO of CableCom, said: “We are pleased that Inflexion is backing us for the next stage of growth. With its support we will continue to enhance our product offering, further invest in technology to create greater capacity and continue to improve our services to our end users and partners.”
This is Inflexion’s third investment this month, following the buyouts of CMO Compliance and On The Beach which were announced on the 24th and 7th October respectively.