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Report: Private Equity Firm TPG to Buy RCN, Grande, for $2.25B

Private equity firm TPG is reportedly close to a deal to purchase RCN and Grande Communications in a deal worth $2.25 billion.

According to a report in the Wall Street Journal, a deal could be announced Monday.

The Journal said that in addition to TPG, which owns other digital media investments like Univision Communications, Spotify and STX Entertainment, Google Capital, the investment arm of Alphabet Inc. is taking a minority stake in the deal.

Overbuilder RCN was sold to Abry Partners in 2010 for about $1.2 billion. RCN has about 289,000 customers in parts of Boston, Chicago, Lehigh Valley (PA), New York City, Philadelphia (Delaware County) and Washington, DC. Grande Communications was launched about a decade ago and has recently concentrated on its high-speed Internet business, and has made moves to deploy 1-Gigabit service in some of its markets. According to its web site, Grande serves more than 160,000 customers in larges and small communities in Texas, including Dallas, San Antonio and Austin.