Madison Dearborn buys majority stake in NextG Networks
Madison Dearborn Partners, a private equity firm in Chicago, has taken a majority stake in NextG Networks, a San Jose, Calif.-based provider of antenna systems used to carry wireless signals, according to a filing with the SEC. The deal will give the company, which had to withdraw its $150 million IPO filing in May, an influx of $360 million.
NextG has been on shaky ground since 2001, when it first plunged into the red. Without the public offering, it needed to find a strong backer to stay alive. Its previous investors include Gabriel Venture Partners, Oak Investment Partners, SVB Financial Group, former AT&T wireless vice chairman Wayne Perry, and Bay Harbour Management.
Madison Dearborn now owns 61 percent of the company, but only has plans to see it grow more. There will be no interruption in service for customers. The deal was technically a merger between NextG and a shell company called Nodes Merger owned and operated by Madison.
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