GTCR to pick up Consumer Cellular

Private equity firm GTCR has agreed to buy Consumer Cellular, a provider of post-paid wireless services, for an undisclosed sum.

The deal is due to complete in the fourth quarter of 2020.

Following the transaction, Ed Evans will become chief executive of the target, while its founder, John Marick, will remain a substantial shareholder in the company.

Oregon-headquartered Consumer Cellular provides affordable cellular plans and services for more than 4.00 million subscribers across the US, with a focus on the 50+ demographic.

The group claims to use the nation’s largest voice and data networks, which cover 99.0 per cent of the country’s population, according to the press release.

Consumer Cellular wireless phones and plans are sold throughout the US by retailers such as Target, as well as online via the target’s website.

Evans said: “GTCR brings significant resources and experience in building industry-leading companies and together we expect to further grow Consumer Cellular’s subscriber base and expand its services offering.”

The transaction will represent another addition to the private equity firm’s portfolio, which includes the likes of AssuredPartners, Regatta Medical, RevSpring and CommerceHub.

Since its inception in 1980, Chicago-based GTCR has invested over USD 200.00 billion in more than 200 companies throughout the US.

Stephen Jeschke, the buyer’s managing director, said: “Through their exceptional service and strong customer value proposition, Consumer Cellular delivers a differentiated customer experience at a lower cost to a growing demographic.

“We are thrilled to be partnering with Consumer Cellular at this exciting time in the company’s evolution.”

According to Zephyr, the M&A database published by Bureau van Dijk, there have been 356 deals targeting wireless telecommunication carriers announced worldwide in 2020 to date.

In the largest of these, Virgin Media and Telefonica Europe are merging under a holding company structure worth GBP 35.85 billion.

NTT DoComo, Softbank and TracFone Wireless, among other companies, were also targeted in this sector so far this year.

Zephus Ltd