Grain Management, a private equity firm focused on digital infrastructure, today announced that it has agreed to acquire Tachus, a fiber-to-the-home (FTTH) provider in Texas, from Crosstimbers Capital Group, a growth equity investor. Tachus represents the first investment for Grain Management’s new flagship private equity fund, Grain Communications Opportunity Fund III. Finally, the acquisition will close in Q2 2021.
Tachus – Overview
Tachus is a fiber optic network provider and overbuilder for the Houston metro area. The company was founded in November 2018 by Hal Brumfield and Carter Old, with financial support from Crosstimbers Capital Group.
Physical Asset
Tachus’ fiber network currently passes over 26.0k homes and serves over 5.0k subscribers. Additionally, as of the end of 2020, the company’s fiber network comprised 300+ fiber route miles and 20k+ fiber strand miles.
Strategy
Grain Management will invest additional equity to support the growth and deployment of Tachus’ fiber broadband network and service offerings. Specifically, Tachus will use Grain Management’s capital to deploy fiber in several market expansions it has underway in the Houston area and beyond.
For example, in October 2020, prior to Grain Management’s ownership, Tachus set-out the goal of investing $30m+, supported by Crosstimbers Capital, in its network infrastructure over the subsequent 12 months.
Competition
Tachus competes with a variety of national and local internet service providers which offer their services through different infrastructure mediums. Firstly, fiber providers including AT&T and enTouch (Astound Broadband). Secondly, hybrid fiber-coaxial (HFC) providers such as Xfinity (Comcast) and Suddenlink (Altice USA). Thirdly, satellite operators such as Viasat and HughesNet. Finally, fixed wireless access (FWA) companies like Rise Broadband.
Transaction Advisors – Grain Management and Tachus
Grain Management’s legal advisor was Alston & Bird.
Tachus and, in turn, Crosstimbers Capital’s financial advisor was Bank Street Group. Additionally, Tachus’ legal advisors were Vinson & Elkins and Willkie Farr & Gallagher.
Grain Management – Overview
Grain Management is a Washington, D.C.-headquartered private equity firm, focused on digital infrastructure investments. Overall, Grain Management is a significant investor in digital infrastructure, having purchased fiber companies Summit Broadband and Ritter Communications. Additionally, in April 2021, the company sold fiber provider WANRack to CBRE Caledon Capital Management.
