Apax Partners

NEP Broadcasting, l.l.c. announces new equity investment by Apax Partners and Spectrum Equity Investors

PITTSBURGH, PA, APRIL 12, 2004 – NEP Broadcasting, L.L.C., the leading national provider of outsourced media services critical to the delivery of live sports and entertainment events, today announced that funds advised by Apax Partners and Spectrum Equity Investors will acquire a majority equity interest in the company from Wachovia Capital Partners.  The new investment capital will be used to enable the company to enter new geographic markets, to make selective strategic acquisitions, and to support current and future customers in the transition to High Definition broadcast technology.  NEP’s executive management team will continue to lead the company and will maintain a significant equity interest in the company upon completion of the transaction.
 
NEP provides a wide range of services to the sports and entertainment industries, including management, coordination and facilities to major networks and broadcast organizations in the United States and globally.  Through its NEP Supershooters division, the company today is the premier provider of mobile television production services for major sporting and entertainment events.  Separately, its NEP Screenworks division is the leading provider of large-scale, video screen solutions for live-audience sports and entertainment events.  The company also is the largest independent operator of Manhattan-based television-production studios and post-production facilities, through its NEP Studios and Post Production divisions.
 
NEP has provided production services to major television and cable networks and entertainment organizers for such events as the Super Bowl, golf and tennis tournaments, NASCAR, HBO boxing, the Academy Awards, the Emmy Awards, the Olympic Games, WWE wrestling events, major concert tours and many corporate projects worldwide.
 
Peter Michel, President and Chief Executive Officer of NEP, said, “Apax and Spectrum are ideal partners for NEP at this point of its growth.  Both firms have enviable track records, and they have impressed us with their commitment and thoroughness throughout this process.”
 
Debra Honkus, President of NEP Supershooters, continued, “We expect Apax and Spectrum will add tremendous value as we continue to invest in our infrastructure to best support our global customers.  While we welcome Apax and Spectrum as our new partners, we thank Wachovia for the support they have provided as we created a strong platform for profitable growth.”
 
Salem Shuchman, the head of Apax Partners’ U.S. Leveraged Transaction Group, said, “Over the past several years, NEP’s highly regarded management team has successfully expanded the company in the area of mobile television production services for major sporting events – a market where the company is set apart as the gold standard – and in other complementary businesses.  We believe the NEP team is poised to extend its market leadership by supporting broadcast and cable networks in the production of high-quality entertainment and sporting events via High Definition technology.  The transition will serve as another opportunity for NEP to showcase its powerful technical capabilities.”
 
Kevin Maroni, General Partner at Spectrum Equity Investors, said, “NEP management has built a business whose real value is reflected in the trust its customers place in it day in and day out to perform mission critical tasks for major sports and entertainment events.  We believe this company with its team is an excellent platform for future growth, in a marketplace where NEP’s proprietary talents will be of even greater importance.”
 
Wachovia Capital Partners, advised by Wachovia Securities, became a significant investor in NEP in October 2000.  NEP subsequently expanded its product offering through acquisitions of other related businesses such as Screenworks and the Image Group.
 
About Apax Partners 
 
Apax Partners is one of the world’s leading private equity investment groups, operating across Europe, the United States and Israel.  It manages and advises over $12 billion on behalf of leading institutional investors around the world.  With over 30 years of direct investing experience, Apax Partners’ Funds provides long-term equity financing to entrepreneurs to build and strengthen world-class companies.  It pursues a balanced equity portfolio strategy, investing in companies at all stages of development from early stage to buy-out.  Apax Partners’ Funds invests in companies across its six chosen global sectors of: information technology; telecommunications; healthcare; media; financial services; retail and consumer.  
 
Apax Partners’ funds have been active investors in the media and technology sectors on both sides of the Atlantic over the past 30 years.  In addition to partnering with NEP, the funds have invested significantly in media-oriented businesses, including satellite firm Inmarsat Ventures Plc., a provider of global communications links to more than 250,000 ships, aircraft and vehicles, Yell Group, most noted for the Yellow Book directories in the U.S., as well as Kabel Deutscheland, Europe’s largest cable business. 
 
For more information, please visit www.apax.com.
 
About Spectrum Equity Investors
 
Spectrum Equity Investors is a private equity firm specializing in investments in the media, communications, and information industries throughout North America and Western Europe.  Based in Boston, Massachusetts and Menlo Park, California, Spectrum has over $3.0 billion in capital under management.  Previous investments include voice and data providers, cable television operators, broadcast satellite systems, publishers and radio operators.
 
The Firm’s partners have invested in over 150 companies throughout their careers. Spectrum typically invests in growth businesses and seeks to support management in its development of the business through Spectrum’s extensive industry knowledge and proprietary relationships.
 
For more information, please visit www.spectrumequity.com.
 
About Wachovia Capital Partners
 
Wachovia Capital Partners, with over $1.0 billion of equity capital under management, is the principal investing arm of Wachovia Corporation, the nation’s fourth largest financial holding company.  Wachovia Capital Partners targets equity and mezzanine investments of $10 to $50 million in the growth industrial, business services, financial services, media and communications, healthcare and energy sectors.  For more information on Wachovia Capital Partners, visit its website at www.wachoviacapitalpartners.com.
 
About NEP
 
Pittsburgh, PA-based NEP Broadcasting provides a wide range of services to the sports and entertainment industries.  NEP Supershooters provides remote broadcast facilities, management personnel, and engineering expertise for many of the high-profile television events presented by the sports and entertainment industry in both digital and high-definition formats.  NEP also possesses the industry’s deepest engineering staff in terms of expertise, creativity and technical savvy.  NEP Screenworks, located in Corona, CA (near Los Angeles), is the leading provider of mobile video systems and indoor and outdoor LED screens and video production services.  NEP Studios provides television production studio facilities in New York City.  NEP Post provides post-production services for a wide range of NEP clients.
 
 
 
Contacts: 
 
Apax Partners 
 
Laura Brightsen 
 
Director, Marketing and PR 
 
Apax Partners 
 
445 Park Avenue 
 
New York, NY 10022 
 
Laura.Brightsen@apax.com 
 
212-419-2461 
 
 
 
Spectrum 
 
333 Middlefield Road 
 
Randy Henderson
 
Spectrum Equity Investors 
 
Menlo Park, CA
 
randy@spectrumequity.com
 
415-464-4600
 
 
 
NEP
 
Todd Fogarty
 
Kekst and Company
 
212-521-4854