Bain Capital, in collaboration with Carolina Power & Light (CP&L), this month closed a spin-off deal that gives the Boston-based private equity firm a majority stake in Interpath Inc., an application service provider (ASP).
Prior to the close, the company was a wholly owned subsidiary of Carolina Power & Light. Bain Capital and CP&L, an energy provider in North and South Carolina, invested $50 million each into the company to charge further growth. According to a statement, “Bain will provide strategic and operational expertise to enable Interpath to leverage its leadership position in the . . . ASP marketplace.”
Bain Capital now holds a 65% ownership stake in Interpath. CP&L owns 35% of the company and is retaining Interpath’s fiber optics network assets and a 10% interest in the BellSouth PCS business, according to the statement.
“As is the case with any of our investments, whether from Fund I or Fund VII, our approach [is to work] closely with management to evaluate potential investments to identify where the company’s growth and profits could be enhanced,” said Andrew Balson, principal at Bain Capital. “When we looked at Interpath’s potential for growth, it’s leadership position in the ASP marketplace, our diligence quickly led to our decision to get involved.”
With the closing, Joel Schleicher, former chief executive of communications solutions provider Expanets, Inc., as the president and CEO of Interpath. “[Interpath’s] asset base and the large commitment from Bain Capital position Interpath as a current and future leader in the ASP market,” said Schleicher in a statement.