UK SME investor Inflexion has completed the buyout of CableCom Networking, a 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.
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, Inflexion said.
It is also described as a “highly attractive” asset class for property investors with strong yields, minimal voids and demand well in excess of supply.
Whilst its core UK student customer base will remain the focus of the business, CableCom said it 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, according to Inflexion managing partner Simon Turner.
He said, “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.”
In January 2013 the firm recruited a Digital Director to lead the digital evolution of its portfolio companies.
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