Telecom Technology and Services Group U.S. Communications Service Provider Quarterly
Spring 2021 Vol. 11, No. 2
In this issue
2 Introduction and Sub Sector Definitions 3 U.S. Summary Comments: Public Markets 4 Public Market Summary Charts 1-6 5 U.S. Communications Service Provider Stocks: M&A Summary Charts 1-2 6 Announced Transactions 7 Announced Transactions with Revenue Multiples 8 Sub Sector Analysis: Large Cap Telecom Charts 1-6 9 Sub Sector Analysis: Alternative Telecom Charts 1-6 10 Sub Sector Analysis: Hosted and Managed Services Charts 1-6 11 Sub Sector Analysis: ILEC and Diversified ILEC Charts 1-6 Investment Banking and Advisory Services 12 Sub Sector Analysis: Cable and Video Charts 1-6 FOCUS Investment Banking LLC is a leading investment bank 13 FOCUS Telecom Technology and with specialized telecom technology and services expertise, Services Team concentrating on providing highly tailored services to emerging middle market and larger organizations in this sector: • Mergers & Acquisition Advisory • Corporate Development Consulting • Strategic Partnering & Alliances • Capital Financing, Debt & Equity • Corporate Valuations U.S. Communications Service Provider Quarterly
By Richard Pierce, FOCUS Managing Director and Telecom Technology and Services Team Leader
FOCUS believes that the need for communications ser- • Has a breadth of knowledge that covers most segments vices has never been greater. Large enterprises, small and of the telecom industry, medium sized businesses and individuals have all come • Has seasoned bankers with decades of telecom industry to rely upon ubiquitous access to voice, video and data experience, services to run their day-to-day activities. Furthermore, the importance of Communications Service Providers • Has a proven transaction methodology for delivering (CSPs) appears poised to increase further as they begin results, to enable a variety of new services ranging from hosted • Is equally comfortable with buy side and sell side M&A, PBX and videoconferencing platforms to in-home secu- rity and energy management solutions. Access to capital • Leverages an experienced team of research professionals, and the benefits of scale will mean that a small number of • Has a national presence with coverage of both east and large companies will continue to dominate certain areas west coasts. such as mobile wireless and video. However, FOCUS con- tinues to see opportunities for middle market CSPs. While Sub Sector Definitions not as large as the industry giants, they continue to thrive by developing innovative business models that share one Large Cap: Large, diversified communications service pro- or more characteristics such as capital efficiency, cus- viders that control a significant number of former RBOC tomer responsiveness, an advanced technology platform access lines and/or have a nationwide wireless operation. and a focus on an underserved industry vertical or geogra- Alternative Telecom: Competitive carriers that primarily phy. Furthermore, it is often the middle market CSPs that provide basic voice, data and transport services to busi- point the direction for the future of the industry. FOCUS nesses and other telecom service providers. is proud of its commitment to the CSP sector and we are excited about the prospects for middle market companies Hosted & Managed Services: Companies that provide in this space. hosted VoIP telecom services as well as additional hosted offerings such as audio and video conferencing. The FOCUS Telecom Technology and Services group con- ILEC & Diversified ILEC: Non-RBOC incumbent carri- sists of two professionals with a combined 30+ years of ers, many of which have branched out into other sectors of transaction experience across a wide variety of telecommu- communications services. nications-related companies. The FOCUS Telecom team is uniquely qualified to help middle market clients reach their Cable & Video: Incumbent cable service providers, satel- strategic objectives because the group: lite video providers and competitive video providers whose core business is providing video services to residential • Devotes significant senior level resources to executing customers. transactions for lower middle market clients,
2 www.focusbankers.com /telecom | Atlanta • Los Angeles Metro • Washington, DC Metro U.S. Summary Comments
Public Markets Hosted and Managed Services The FOCUS Communications Service Provider Index On the down side, the 7.1% drop in the Hosted and Man- (CSPI) had a fourth straight reporting period with a pos- aged Services sub sector made it the worst performing itive return. However, this period’s gain of 1.3% was rela- sub sector in the CSPI this period and the only one to tively modest and under-performed both the 5.8% gain in post a negative return. Six of the eight companies in the the S&P 500 and the 2.8% gain in the NASDAQ over the index delivered a loss over the past three months, including corresponding time frame. The CSPI is also up 27.6% for four companies (American Virtual Cloud Technologies, the full year. However, even with this substantial increase Bandwidth, Crexendo and RingCentral) with double digit the sector still lags the S&P 500 (up 53.7%) and the losses. However, the sub sector is still the top performing NASDAQ (up 72.0%) by a wide margin. Sector multiples sub sector in the CSPI for the full year period with a gain are significantly higher than they were at this time last of nearly 125%. Every singly company in the index deliv- year. The sector revenue multiple increased from 2.5x to ered a double digit return over the past year, with Twilio 3.0x, and the sector EBITDA multiple jumped from 7.2x leading the pack with a whopping year-over-year increase to 8.5x of 280.8%. The multiples for the sub sector have also more than doubled over the past 12 months and ended the Large Cap period at 15.4x revenue and 277.3x EBITDA. The Large Cap sub sector was more or less flat this past three months, posting a slight gain of 0.2%. Lumen was ILEC and Diversified ILEC the sub sector’s top performer with a gain of 36.9%, while The ILEC and Diversified ILEC sub sector was the CSPI’s Verizon dropped by 1.0%. For the full year, the sub sector top performing sector over the past three months with a was up 29.4%, with Lumen once again posting far and gain of 18.9%. Consolidated Communications (up 47.2%) away the largest increase. Sub sector multiples closed out and Telephone & Data Systems (up 23.6%) were the the period at 3.1x revenue and 8.8x EBITDA. Both of primary reasons for the increase. The sub sector is also these are higher than year-ago multiples of 2.6x revenue up 33.6% over the past year, with every single company and 7.6x EBITDA enjoying a positive return. In fact, four of the five com- panies in the sub sector are trading 30% or more higher Alternative Telecom than they were at this time last year. These increases were This was the second straight reporting period where driven much more by company performance than multi- the Alternative Telecom sub sector had a slight gain. In ple increases. The sub sector revenue multiple ticked up this case, the sub sector climbed 3.2% in the past three slightly from 1.4x to 1.5x, while the sub sector EBITDA months. Double digit gains at Boingo and Cogent Commu- multiple had a similarly small increase as it went from nications helped power the increase, while a nearly 50% 4.7x to 4.8x. loss at GTT served as a significant drag on sub sector performance. The sub sector is also up slightly compared to Cable and Video this time last year with a gain of 2.8%. Boingo was once The Cable and Video sub sector cooled off somewhat again a major contributor to this increase, as was Uniti. this period with a small gain of 1.7%. The sub sector Sub sector multiples are higher than they were a year ago, was evenly split between gainers and losers with three but only slightly. The sub sector revenue multiple went companies falling into each category. WOW was the sub from 4.3x a year ago to 4.5x currently, while the sub sec- sector’s top performer with a three-month increase of tor EBITDA multiple increased from 9.6x to 10.2x over 27.4%, while Cable One brought up the rear with a drop the same time period. of 17.9%. Sub sector performance looks significantly better over the full year period with a 12-month gain of 55.8%. These gains were broad-based as every single stock in the index delivered a double-digit return. At the end of the period, sub sector multiples stood at 3.4x revenue and 10.8x EBITDA. These compare to multiples at this time last year of 2.5x revenue and 8.0x EBITDA.
www.focusbankers.com /telecom | Atlanta • Los Angeles Metro • Washington, DC Metro 3 U.S. Communications Service Provider Sector: Public Market Summary
Twelve Month Index Returns Sector and Sub Sector Returns
200.00% 12 Month 3 Month Communications Service Provider 27.6% 1.3% 150.00% Large Cap 29.4% 0.2% 100.00% Alternative Telecom 2.8% 3.2% Hosted and Managed Services 124.8% -7.1% 50.00% ILEC and Diversified ILEC 33.6% 18.9% 0.00% Cable and Video 55.8% 1.7% S&P 500 53.7% 5.8% NASDAQ 72.0% 2.8% Communications Service Provider S&P 500 Index NASDAQ Index
Revenue Multiple Trends Sector and Sub Sector Revenue Multiples
4.0x 3/31/2021 3/31/2020 Communications Service Provider 3.0x 2.5x 3.0x Large Cap 3.1x 2.6x Alternative Telecom 4.5x 4.3x 2.0x Hosted and Managed Services 15.4x 7.6x ILEC and Diversified ILEC 1.5x 1.4x 1.0x Cable and Video 3.4x 2.5x
0.0x
Enterprise Value/Revenue
EBITDA Multiple Trends Sector and Sub Sector EBITDA Multiples
10.0x 3/31/2021 3/31/2020 Communications Service Provider 8.5x 7.2x 8.0x Large Cap 8.8x 7.6x 6.0x Alternative Telecom 10.2x 9.6x Hosted and Managed Services 277.3x 122.2x 4.0x ILEC and Diversified ILEC 4.8x 4.7x
2.0x Cable and Video 10.8x 8.0x
0.0x
Enterprise Value/EBITDA
Source: Capital IQ
4 www.focusbankers.com /telecom | Atlanta • Los Angeles Metro • Washington, DC Metro U.S. Communications Service Provider Stocks: M&A Summary
M&A money getting funneled into broadband, we expect to see 2021 M&A activity was off to a strong start for the continued activity among both rural fiber and wireless Communications Service Provider sector, at least in broadband providers in the coming months and years. terms of the total number of transactions. We counted 25 total transactions for the first three months of the year, Hosted and Managed Services compared to a more typical volume of around 20. Total Activity in the Hosted and Managed Services sub sector announced transaction dollar volume was a bit light at picked up dramatically with nine total transactions this $2.7 billion, although this number tends to have quite a bit period. The deal with the largest announced transaction of volatility from period to period. dollar volume in the sub sector was Sangoma Technolo- gies’ acquisition of Star2Star for $437 million. In another Alternative Telecom deal involving a hosted communications platform provider, Activity in the Alternative Telecom sub sector dipped a bit Crexendo acquired NetSapiens for $50 million. Serial from what we saw in our last report, but still remained acquirers Momentum Telecom and BCM One also notched relatively robust with 15 transactions. This included the acquisitions this period with their purchases of Altus Tech- two largest deals in the Communications Service Provider nology and SkySwitch, respectively. Finally, the sub sector sector this period; the Sinch acquisition of Inteliquent for received a new platform investment from a private equity $1.1 billion and the take-private transaction for Boingo investor with the acquisition of Inflow Communications by Wireless for $775 million. We also noted that Zayo Renovus Capital Partners. returned to the deal table with its acquisition of Intelligent Fiber Network. Of the remaining 12 deals, broadband ser- ILEC and Diversified ILEC vices was the most common theme. There were five deals There were no transactions in the ILEC and Diversified involving broadband fiber operators, including the Altice ILEC sub sector this period. Network acquisition of Morris Broadband and the Astound Broadband acquisition of Central California-based Digital Cable and Video West Networks. Wireless broadband providers were also The lone transaction in the Cable and Video sub sector was active this period with four total deals, two of which were Shenandoah Telecommunications’ acquisition of West Vir- made by NextLink Internet. With the amount of Federal ginia-based cable operator Cannan Cable for $2.1 million.
continued on page 6 >
U.S. Communication Service Provider Sector: M&A Summary
M&A Activity: Number of Transactions M&A Activity ($ Value of Transactions in Millions)
100 $30,000.0
83 80 $24,123.4 80 74 66 $20,000.0 $17,205.5 $17,302.9 60
40 $10,000.0 25
20 $2,467.2 $2,714.5
0 $0.0 2017 2018 2019 2020 Through 2017 2018 2019 2020 Through 3/31/21 3/31/21
www.focusbankers.com /telecom | Atlanta • Los Angeles Metro • Washington, DC Metro 5 Transactions with Announced Multiples slightly lower (but still healthy) multiples of 4.4x revenue The sector had four transactions with announced mul- and 24.6x EBITDA. The other two transactions this period tiples this period. The two highest multiple transactions were both in the Alternative Telecom sub sector. The Digi- were both in the Hosted and Managed Services sub sector. tal Colonies purchase of Boingo Wireless had multiples of The Sangoma Technologies acquisition of Star2Star was 3.2x revenue and 9.9x EBITDA, while the Sinch acquisi- done at 5.5x revenue and 29.7x EBITDA. In addition, the tion of Inteliquent had multiples of 2.1x revenue and 8.4x NetSapiens acquisition by Crexendo tipped the scales at EBITDA.
M&A Announced Transactions (1/1/21 – 3/31/21)
Date Purchase Acquiror Target Sector Description Announced Price Greenlight Networks Plexicomm Alternative Telecom 3/23/21 NA Operates network infrastructure that delivers broadband internet Service Providers in the Binghamton, New York region. Telarus Chorus Alternative Telecom 3/18/21 NA Voice and data, cloud computing, virtualization and colocation Communications Service Providers services. Zayo Group Intelligent Fiber Alternative Telecom 3/9/21 NA Fiber-based connectivity solutions to over 400 customers using a Network Service Providers 5,000 route-mile network in Indiana. Crexendo NetSapiens Hosted and Managed 3/8/21 $50.0 Communications, collaboration and contact center software and Telecom Services SaaS for service providers, government agencies and businesses. Global Tech Jabber Hosted and Managed 3/8/21 NA Provides VoIP phone services. Industries Telecommunications Telecom Services Altice Morris Broadband Alternative Telecom 3/1/21 $310.0 Broadband-based internet, television and VoIP telephone service Service Providers for consumers and businesses in North Carolina. Digital Colony Boingo Wireless Alternative Telecom 3/1/21 $775.4 Indoor cellular distributed antenna systems, Wi-Fi and small cell Partners Service Providers networks services to consumers, carriers and advertisers. Fatbeam Tek-Hut (Internet and Alternative Telecom 2/25/21 NA Provider of Internet and WAN services in Idaho. WAN Business) Service Providers Shenandoah Canaan Cable Cable and Video 2/25/21 $2.1 Cable television, internet connectivity and VoIP phone services Telecommunications in West Virginia. Content + Cloud SIP Communications Hosted and Managed 2/23/21 NA Collaboration and communication products and solutions for Telecom Services public and private sector customers. Dobson Technologies Pinnacle Alternative Telecom 2/23/21 NA High-speed fiber services to business and residential customers Communications Service Providers in parts of Western Arkansas and Eastern Oklahoma. Sinch Inteliquent Alternative Telecom 2/17/21 $1,140.0 Voice communications and Ethernet transport services for Service Providers telecom service providers. RealPage WhiteSky Networks Alternative Telecom 2/10/21 NA Voice, video and cable television services for multi-dwelling unit Service Providers housing developments and businesses across the U.S. Momentum Telecom Altus Technology Hosted and Managed 2/8/21 NA Hosted cloud-based unified communications-as-a-service, voice, Telecom Services conferencing, contact center and networking services. NextLink Internet Future Technologies Alternative Telecom 2/2/21 NA High-speed fiber backed wireless internet services in Eastern Service Providers Nebraska and Western Iowa. Thinq Commio Hosted and Managed 2/1/21 NA Cloud communication services for businesses including hosted Telecom Services voice, VoIP, PBX, SIP trunking and routing-as-a-service. Sangoma Star2Star Hosted and Managed 1/29/21 $437.0 Cloud-based communication services for midmarket and Technologies Telecom Services enterprise-sized customers. Astound Broadband Digital West Alternative Telecom 1/26/21 NA Fiber-optic internet connectivity, colocation, managed network, Service Providers Web and email hosting and cloud managed services for businesses. Point Broadband Vergennes Broadband Alternative Telecom 1/15/21 NA Fiber-to-the-home and fiber-fixed wireless Internet services in Service Providers Michigan. Management Nirvanix.com Hosted and Managed 1/13/21 NA VoIP and PBX solutions for businesses. Telecom Services
6 www.focusbankers.com /telecom | Atlanta • Los Angeles Metro • Washington, DC Metro M&A Announced Transactions (1/1/21 – 3/31/21) continued
Date Purchase Acquiror Target Sector Description Announced Price NextLink Internet SkyWave Broadband Alternative Telecom 1/12/21 NA Provides broadband services in Texas. Internet Service Providers Wisper ISP Easy Net Alternative Telecom 1/11/21 NA Provides broadband internet services in Missouri. Service Providers BCM One SkySwitch Hosted and Managed 1/5/21 NA White-label UCaaS provider. Telecom Services BullsEye Telecom Bandwave Systems Alternative Telecom 1/5/21 NA Broadband aggregation, remote teleworker solutions, guest Service Providers Wi-Fi, 4G wireless backup, Ethernet/fiber and SDN solutions. Renovus Capital Inflow Communications Hosted and Managed 1/5/21 NA Provides contact center, customer experience and unified Partners Telecom Services communications solutions to over 500 customers nationwide.
M&A Announced Transactions with Revenue Multiples (4/1/20 – 3/31/21)
Date Purchase Revenue EBITDA Acquiror Target Sector Description Announced Price Multiple Multiple Crexendo NetSapiens Hosted and 3/8/21 $50.0 4.4 x 24.6 x Communications, collaboration and contact Managed Telecom center software and SaaS for service providers, Services government agencies and businesses. Digital Colony Boingo Wireless Alternative 3/1/21 $775.4 3.2 x 9.9 x Indoor cellular distributed antenna systems, Partners Telecom Service Wi-Fi and small cell networks services to Providers consumers, carriers and advertisers. Sinch Inteliquent Hosted and 2/17/21 $1,140.0 2.1 x 8.4 x Voice communications and Ethernet transport Managed Telecom services for telecom service providers. Services Sangoma Star2Star Hosted and 1/29/21 $437.0 5.5 x 29.7 x Cloud-based communication services for Technologies Managed Telecom midmarket and enterprise-sized customers. Services ATN International Alaska Diversified ILEC 12/24/20 $413.6 1.7 x 5.5 x Provides wireless and fixed-line telephone and Communications wireless and broadband internet service for Systems businesses and consumers in Alaska. Morgan Stanley Altice USA Alternative 7/28/20 $3,200.0 NA 14.6 x Advanced fiber, managed services, telephony Infrastructure (Lightpath Telecom Service services and VoIP services to the business Partners Business) Providers market in the New York metropolitan area. Oak Hill Capital Otelco Diversified ILEC 7/27/20 $105.3 1.7 x 4.8 x Incumbent telco operating in Alabama, Maine, Partners Massachusetts, Missouri, New Hampshire, Vermont and West Virginia.
www.focusbankers.com /telecom | Atlanta • Los Angeles Metro • Washington, DC Metro 7 Sub Sector Analysis: Large Cap
Twelve Month Index Returns Company Returns
150.00 12 Month 3 Month Large Cap Index 29.4% 0.2% AT&T 3.8% 5.3% 100.00 Lumen 41.1% 36.9% Verizon 8.2% -1.0% 50.00
0.00
Large Cap
Revenue Multiple Trends Company Revenue Multiples
4.0x 3/31/2021 3/31/2020 Large Cap Index 3.1x 2.6x 3.0x AT&T 2.4x 2.3x Lumen 2.3x 2.0x 2.0x Verizon 2.9x 2.7x
1.0x
0.0x
Enterprise Value/Revenue
EBITDA Multiple Trends Company EBITDA Multiples
10.0x 3/31/2021 3/31/2020 Large Cap Index 8.8x 7.6x 8.0x AT&T 8.0x 7.6x 6.0x Lumen 5.7x 5.1x Verizon 7.7x 7.4x 4.0x
2.0x
0.0x
Enterprise Value/EBITDA
Source: Capital IQ
8 www.focusbankers.com /telecom | Atlanta • Los Angeles Metro • Washington, DC Metro Sub Sector Analysis: Alternative Telecom
Twelve Month Index Returns Company Returns
150.00 12 Month 3 Month Alternative Telecom Index 2.8% 3.2% Boingo 32.6% 10.6% 100.00 Cogent Communications -16.1% 14.8% GTT -77.0% -48.7% 50.00 Uniti 82.9% -6.0%
0.00
Alternative Telecom
Revenue Multiple Trends Company Revenue Multiples
6.0x 3/31/2021 3/31/2020 Alternative Telecom Index 4.5x 4.3x Boingo 3.3x 2.3x 4.0x Cogent Communications 7.3x 8.2x GTT 2.2x 2.4x
2.0x Uniti 7.0x 6.0x
0.0x
Enterprise Value/Revenue
EBITDA Multiple Trends Company EBITDA Multiples
15.0x 3/31/2021 3/31/2020 Alternative Telecom Index 10.2x 9.6x Boingo 10.4x 7.9x 10.0x Cogent Communications 21.1x 24.4x GTT 9.9x 10.8x
5.0x Uniti 10.1x 8.5x
0.0x
Enterprise Value/EBITDA
Source: Capital IQ
www.focusbankers.com /telecom | Atlanta • Los Angeles Metro • Washington, DC Metro 9 Sub Sector Analysis: Hosted & Managed Services
Twelve Month Index Returns Company Returns
300.00 12 Month 3 Month Hosted & Managed Services Index 124.8% -7.1% 8x8 134.1% -5.9% 200.00 American Virtual Cloud Tech. 11.0% -21.4% Bandwidth 88.3% -17.5% 100.00 Crexendo 34.9% -16.3% j2 Global 60.1% 22.7% RingCentral 40.6% -21.4% 0.00 Twilio 280.8% 0.7% Vonage 63.5% -8.2%
Hosted & Managed Services
Revenue Multiple Trends Company Revenue Multiples
20.0x 3/31/2021 3/31/2020 Hosted & Managed Services 15.4x 7.6x 15.0x Index 8x8 7.3x 3.5x
10.0x American Virtual Cloud Tech. 1.8x NA Bandwidth 9.8x 5.7x
5.0x Crexendo 5.6x 4.1x j2 Global 4.6x 3.3x
0.0x RingCentral 23.5x 19.1x Twilio 31.6x 8.9x Vonage 2.9x 1.9x Enterprise Value/Revenue
EBITDA Multiple Trends Company EBITDA Multiples
400.0x 3/31/2021 3/31/2020 Hosted & Managed Services 277.3x 122.2x 300.0x Index 8x8 NM NM
200.0x American Virtual Cloud Tech. NM NA Bandwidth 236.1x NM
100.0x Crexendo 60.9x 48.1x j2 Global 11.8x 9.0x
0.0x RingCentral NM NM Twilio NM NM Vonage 32.0x 23.1x Enterprise Value/EBITDA
Source: Capital IQ
10 www.focusbankers.com /telecom | Atlanta • Los Angeles Metro • Washington, DC Metro Sub Sector Analysis: ILEC & Diversified ILEC
Twelve Month Index Returns Company Returns
150.00 12 Month 3 Month ILEC & Diversified ILEC Index 33.6% 18.9% Alaska Communications Systems 86.8% -11.9% 100.00 Consolidated Communications 58.2% 47.2% Cincinnati Bell 4.8% 0.5% 50.00 Otelco 32.8% 9.5% Telephone & Data Systems 37.0% 23.6%
0.00
ILEC & Diversified ILEC
Revenue Multiple Trends Company Revenue Multiples
3.0x 3/31/2021 3/31/2020 ILEC & Diversified ILEC Index 1.5x 1.4x Alaska Communications Systems 1.7x 1.4x 2.0x Consolidated Communications 1.9x 2.0x Cincinnati Bell 1.9x 1.9x
1.0x Otelco 1.9x 1.8x Telephone & Data Systems 1.2x 1.1x
0.0x
Enterprise Value/Revenue
EBITDA Multiple Trends Company EBITDA Multiples
8.0x 3/31/2021 3/31/2020 ILEC & Diversified ILEC Index 4.8x 4.7x 6.0x Alaska Communications Systems 6.4x 5.2x Consolidated Communications 5.1x 5.7x 4.0x Cincinnati Bell 7.4x 7.3x Otelco 5.0x 4.7x 2.0x Telephone & Data Systems 5.5x 5.0x
0.0x
Enterprise Value/EBITDA
Source: Capital IQ
www.focusbankers.com /telecom | Atlanta • Los Angeles Metro • Washington, DC Metro 11 Sub Sector Analysis: Cable & Video
Twelve Month Index Returns Company Returns
200.00 12 Month 3 Month Cable & Video Index 55.8% 1.7% 150.00 Altice 45.9% -14.1% Cable One 11.2% -17.9% 100.00 Charter Communications 41.4% -6.7% Comcast 57.4% 3.3% 50.00 Dish Network 81.1% 11.9% WOW 185.5% 27.4% 0.00
Cable & Video
Revenue Multiple Trends Company Revenue Multiples
4.0x 3/31/2021 3/31/2020 Cable & Video Index 3.4x 2.5x 3.0x Altice 4.3x 3.9x Cable One 9.7x 9.2x 2.0x Charter Communications 4.4x 4.0x Comcast 3.4x 2.4x 1.0x Dish Network 2.0x 1.7x WOW 3.0x 2.4x 0.0x
Enterprise Value/Revenue
EBITDA Multiple Trends Company EBITDA Multiples
12.0x 3/31/2021 3/31/2020
10.0x Cable & Video Index 10.8x 8.0x Altice 9.9x 9.3x 8.0x Cable One 19.6x 19.5x 6.0x Charter Communications 11.6x 11.1x
4.0x Comcast 11.5x 7.9x Dish Network 8.6x 8.7x 2.0x WOW 8.8x 7.1x 0.0x
Enterprise Value/EBITDA
Source: Capital IQ
12 www.focusbankers.com /telecom | Atlanta • Los Angeles Metro • Washington, DC Metro FOCUS Telecom Technology and Services Team
Richard H. Pierce David Freeland Managing Director and Telecom Managing Director, Technology and Services Team San Francisco, California Leader, Washington, DC [email protected] [email protected] 978-505-1837 202-470-1983 David Freeland, a FOCUS Manag- Rich Pierce has 20 years of invest- ing Director, has more than fifteen ment banking experience advising years of experience providing invest- middle market clients on a variety of mergers and acqui- ment banking and management consulting services to a sitions and capital raising transactions. During that time, variety of corporate clients, ranging from the Fortune 500 Mr. Pierce’s primary emphasis has been on serving clients to start-up businesses. He has been an investment banker in the telecommunications industry including providers of since 2003, advising clients on mergers and acquisitions network related hardware and software products, wireless and capital raising transactions. Mr. Freeland has broad and wireline telecommunications service providers and net- experience in the telecom and technology industry and has work engineering and construction companies. significant experience with data center companies.
About FOCUS Investment Banking LLC With more than three decades of experience, FOCUS Investment Banking is a trusted name in M&A advisory ser- vices worldwide. FOCUS works to understand each client’s strategic and financial objectives, craft the best plan to achieve these goals, and deliver success. Whether helping to sell, buy, or raise capital, FOCUS strives to maximize the value of every transaction to the benefit of its clients. FOCUS bankers are seasoned operating and financial executives with extensive transaction experience. Securities transactions conducted by FOCUS Securities LLC, an affiliated company, registered Broker Dealer member FINRA/SIPC. For more information on FOCUS, please visit www.focusbankers.com. © 2021 FOCUS Investment Banking LLC
Headquarters FOCUS Investment Banking LLC 8065 Leesburg Pike, Suite 750, Vienna, VA 22182 202.785.9404 | 202.785.9413 (fax)
Securities transactions conducted by FOCUS Securities LLC, an affiliated company, registered Broker Dealer member FINRA/SIPC.
www.focusbankers.com /telecom | Atlanta • Los Angeles Metro • Washington, DC Metro 13