The Surprising Truth About Who Owns Consumer Cellular Today

You might be surprised to learn who owns Consumer Cellular. GTCR, a private equity firm, acquired Consumer Cellular on October 28, 2020, for approximately $2.3 billion. This acquisition represented a major move for the wireless provider that serves mostly customers aged 50 and above.

Consumer Cellular now operates as a subsidiary under GTCR's ownership, though many customers might not notice any difference. The company managed to keep its focus on value and customer service and continues to earn recognition through JD Power awards. 

Consumer Cellular serves around 4 million subscribers nationwide with coverage that reaches 99% of the U.S. population. GTCR's impressive track record includes investments of over $25 billion in more than 270 companies since its founding in 1980.

This piece will tell the complete story of Consumer Cellular's ownership. We'll examine how the transition took place, what changes occurred after the acquisition, and what future possibilities await this popular wireless provider.

Who is Consumer Cellular owned by now?

GTCR LLC, a private equity firm based in Chicago, Illinois, now owns Consumer Cellular completely. The company bought a controlling stake in Consumer Cellular for about $2.3 billion in October 2020. This deal marked a huge milestone for the wireless provider that has served customers since 1995.

GTCR's full ownership explained

GTCR bought a majority stake in Consumer Cellular, while existing shareholders managed to keep a major minority position in the company. John Marick, one of Consumer Cellular's co-founders, kept substantial shares and stayed on the board of directors after the deal.

GTCR, established in 1980, specializes in leveraged buyouts, recapitalization, growth capital, and roll-up transactions. The company uses "The Leaders Strategy™" to identify, purchase, and build market-leading companies through organic growth and strategic acquisitions.

The private equity firm paid top dollar for Consumer Cellular because its customer base is made up of users over 50 years old. This demographic is wealthier and more valuable than prepaid clients of rivals like Mint Mobile and Tracfone.

GTCR's shareholder structure has both insiders and institutional investors. The firm also gets financing from major banks to fund its acquisitions, as shown by their other investments.

How GTCR fits into the telecom landscape

Several major players fought to acquire Consumer Cellular. The bidding war included Dish Network, Altice USA, Ultra Mobile, and a group led by Boost Mobile founder Peter Adderton.

The wireless industry saw major consolidation at the time of this deal. Dish Network bought both Boost Mobile and Ting, while Verizon acquired TracFone during this period.

GTCR's Financial Services & Technology team has invested in over 30 platforms and bought more than 375 firms since 2000. These deals total more than $48 billion. The firm has also invested more than $18 billion in over 200 companies since it started.

GTCR executives showed strong faith in Consumer Cellular's business model and future. David Donnini, Managing Director at GTCR, stated: "John and the Consumer Cellular team have built a tremendous business that is well-positioned for long-term success".

The firm promised to keep all Consumer Cellular's offices and employees after the acquisition, showing their confidence in the company's current structure.

From founders to private equity: A timeline of ownership

Consumer Cellular's experience spans almost three decades. Two entrepreneurs started the company that ended up being acquired by a major private equity firm.

1995–2008: Founders build the brand

John Marick and Greg Pryor, two former McCaw Cellular Communications employees, started Consumer Cellular in October 1995. They launched the company with a modest $25,000 small-business loan. Their vision was simple: they wanted to make cellular service available and affordable to everyone, especially when you have casual mobile users.

The company served just 40 customers at the end of its first year. Their persistence paid off as they built their customer base steadily throughout the late 1990s and early 2000s. We focused on developing our core service offering while the wireless industry was still maturing.

2008–2020: Growth through AARP and retail expansion

The company reached a turning point in 2008 by becoming AARP members' preferred provider. They offered a 5% monthly discount on service plans and a 30% discount on accessories. This partnership helped them focus on the 50+ demographic.

Consumer Cellular's first retail presence came through a mutually beneficial alliance with Sears in 2011.

Their physical footprint grew as:

• Products appeared in Target stores in 2014

• The company expanded to Best Buy locations in 2018

These retail partnerships stimulated remarkable growth. Revenue jumped from $44.6 million in 2007 to about $263 million by 2012. The company consistently appeared on Inc. 5000's list of America's fastest-growing companies between 2009 and 2020.

2020–Present: GTCR takes over

Chicago-based private equity firm GTCR acquired Consumer Cellular in October 2020 for about $2.3 billion after an intense bidding war with Dish Network, Altice USA, and others. GTCR got a majority interest while existing shareholders kept much of the minority position.

Co-founders Marick and Pryor retired after 25 years when the acquisition happened. Marick stayed on the board of directors. Wireless industry veteran Ed Evans took over as CEO. Under GTCR's ownership, Consumer Cellular grew its subscriber base to approximately 4 million customers nationwide.

What changed after GTCR took control?

GTCR's acquisition of Consumer Cellular in 2020 brought major operational changes to the wireless provider. The company grew substantially under the private equity firm's ownership while serving its core 50+ demographic.

Leadership move: Ed Evans as CEO

Founder John Marick stepped down from his CEO position but stayed on the board of directors as a major shareholder. Ed Evans took over as the new CEO, bringing more than three decades of wireless industry expertise. Evans had previously worked with GTCR during their investment in Syniverse Technologies.

Evans brought a practical leadership approach to Consumer Cellular. "I firmly believe in truly understanding all aspects of the business. It's not about sitting in a boardroom; it's about diving headfirst into our daily operations," Evans explained about his management style. His hands-on method included listening to sales and customer service calls to learn about customer needs and employee challenges.

Retail expansion and new product lines

Consumer Cellular started an ambitious retail expansion strategy under GTCR's ownership. The company opened physical stores nationwide and planned to have 25 locations by year-end. These stores served not just as sales points but as "hubs of engagement" where customers could interact with staff and enjoy a free cup of coffee.

The company expanded its product offerings beyond phone services. Evans noted that the expansion included "wearables, watches, tablets, and in-home healthcare". The company launched four new product lines within twelve months after the acquisition.

Increased investment in technology

GTCR boosted technology investment after taking control. The company invested over $100 million in advertising through digital, print, and national TV. Consumer Cellular's EBITDA grew by more than 150% since GTCR's investment in December 2020.

The company focused on 5G capabilities extensively. "5G technologies are allowing them to use their devices in their homes for things like telemedicine, so they do not have to worry about going out," Evans noted. The company developed a wireless 5G base station that customers could connect regular landline phones to—a solution that met their target demographic's specific needs.

The future of Consumer Cellular under GTCR

Consumer Cellular's future under GTCR ownership looks promising with changes likely ahead. GTCR still owns Consumer Cellular, but recent events suggest they might not keep it forever.

Rumors of a potential sale

GTCR has started learning about possible sale options just a few years after buying Consumer Cellular. Goldman Sachs and Barclays now work with the GTCR-backed wireless provider to review a potential sale. This move follows GTCR's soaring win in 2020, when they won an intense bidding war against major industry players.

Dish Network offered almost $2 billion back then. Boost founder Peter Adderton teamed up with Marlin Equity showed interest, along with cable companies Altice and Comcast.

GTCR's long-term investment approach

The sale rumors haven't changed GTCR's investment philosophy. They use what they call "The Leaders Strategy™" to find and team up with management leaders. Together, they build market-leading companies through big acquisitions and natural growth. GTCR has invested more than $18 billion in over 200 companies since it started. This shows their skill in helping businesses succeed long-term.

Stephen Jeschke, Managing Director at GTCR, earlier said: "Through their exceptional service and strong customer value proposition, Consumer Cellular delivers a differentiated customer experience at a lower cost to a growing demographic". This suggests GTCR sees Consumer Cellular's unique market position clearly.

What it means for customers and employees

Whatever ownership changes happen, customers and employees can expect stability. GTCR managed to keep all offices open and employees on board after the 2020 purchase. This shows their commitment to keeping operations stable. Consumer Cellular shared the acquisition money with its workers. Eligible employees got up to one and a half times their yearly salary.

Customers should expect their service to continue smoothly even if another sale happens. Industry analyst Jeff Moore of Wave7 Research called Consumer Cellular the "poster child" for MVNOs. He thinks its purchase by a private equity firm means it will stay independent with room to grow.

Conclusion

GTCR, a Chicago-based private equity firm, owns Consumer Cellular after buying the wireless provider in 2020 for about $2.3 billion. This ownership marks a huge leap from when founders John Marick and Greg Pryor started the company.

A $25,000 loan helped launch what became a major wireless provider with nearly 4 million subscribers today. Few companies that move from founder ownership to private equity control keep their core values and customer focus intact. GTCR saw real value in Consumer Cellular's 20-year-old reputation with the 50+ demographic. This was definitely a key reason they paid premium during the acquisition.

Consumer Cellular has seen notable changes since GTCR took over. The core team changed when Ed Evans became CEO, bringing his decades of wireless industry experience. The company expanded its retail presence and added new product lines like wearables and healthcare options. A $100 million investment in technology and advertising has made Consumer Cellular stronger, especially when you have 5G capabilities.

Recent rumors hint at another possible sale, which means GTCR might not stay the owner for long. The company's history shows it keeps service quality high even as ownership changes hands. The company should continue offering affordable, customer-friendly wireless service to older Americans, whatever company owns it next.

Consumer Cellular's basic business approach and target market won't change much even if ownership does. Strong investment in new technologies and retail growth, combined with this stability, points to a bright future for this unique wireless industry player.

FAQs

Q1. Who currently owns Consumer Cellular? 

Consumer Cellular is currently owned by GTCR, a private equity firm based in Chicago. GTCR acquired the company in October 2020 for approximately $2.3 billion.

Q2. Has Consumer Cellular's service changed since the acquisition? 

While there have been some changes in leadership and expansion of product lines, Consumer Cellular has maintained its focus on providing affordable wireless service to customers aged 50 and above. The company has also invested in new technologies, particularly 5G capabilities.

Q3. Are there plans to sell Consumer Cellular again? 

There are rumors that GTCR is exploring potential sale options for Consumer Cellular. However, nothing has been confirmed, and it's unclear how this might affect the company's operations or customers.

Q4. What new products or services has Consumer Cellular introduced recently? 

Under GTCR's ownership, Consumer Cellular has expanded its product offerings to include wearables, watches, tablets, and in-home healthcare devices. They've also developed a wireless 5G base station for landline phones.

Q5. How many subscribers does Consumer Cellular currently have? 

Consumer Cellular serves approximately 4 million subscribers nationwide, with coverage reaching 99% of the U.S. population.