telecomm

NewSpring to Acquire X5 Solutions

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NewSpring Holdings has signed an agreement to purchase X5 Solutions, a provider of voice and data communication services. The transaction is pending regulatory approval and is targeted to close in March.

X5 Solutions is a provider of telecommunication services including traditional voice and data, SIP trunking, hosted voice, conferencing, and Ethernet. Customers include private and public businesses, government agencies and wholesale partners across North America.  X5 is headquartered in Seattle (www.x5solutions.com).

NewSpring has partnered with a new senior executive team to acquire X5.  Greg Forrest and Rick Hirsh will join the company and have decades of executive-level experience serving as founders and CEOs of several large, successful B2B technology service providers and technology integrators.

This acquisition is part of a long-term growth strategy by NewSpring to provide X5 customers broader and more extensive coverage. There will be significant investment made by X5 to expand its network infrastructure, operational capacity and work force.

NewSpring Holdings focuses on control buyouts and platform builds, targeting companies with between $5 million and $25 million of revenue.  Sectors of interest include business process automation, services, software and niche manufacturing/distribution.  NewSpring Holdings is part of the NewSpring Capital family of funds, a provider of private equity capital focused in the Mid-Atlantic region with over $1 billion of committed capital. The firm has offices in Radnor, PA; Short Hills, NJ; and Washington, DC (www.newspringcapital.com). 

© 2015 PEPD • Private Equity’s Leading News Magazine • 2-20-15

Resilience Capital Partners Acquires Mill City TEC

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Resilience Capital Partners has acquired Mill City TEC, a provider of civil and electrical construction and maintenance services to the wireless industry. Mill City is the second add-on acquisition completed by Aero Communications since being acquired by Resilience in October 2012.

Mill City Communications specializes in providing wireless network services, including cell tower infrastructure upgrades and maintenance, to telecommunications companies and related service partners. The company employs approximately 130 civil and electrical engineers, licensed electricians, construction professionals, project managers and related support personnel operating throughout the Upper Midwestern United States. Mill City is headquartered in Minneapolis (www.millcitytec.com).

Aero Communications provides system design and engineering, construction, wiring, installation, maintenance and repair services to broadband and wireless providers, businesses, public venues, government facilities and residential subscribers. The company employs approximately 1,000 technicians, engineers, customer service and related support personnel in field offices throughout 12 states. Aero Communications was founded in 1983 and is headquartered in Canton, MI (www.acidirect.com).

“We welcome the entire Mill City organization to Aero and Resilience. This is a perfect example of a wonderful company in its geography joining forces with a national wireless and cable communication and infrastructure service company to better serve its customers,” said Steven Rosen, Co-CEO of Resilience Capital Partners. “Aero will continue to expand its geography through investment and acquisition in support of its customers in 2014.”

Resilience Capital Partners specializes in investing in middle market companies with $25 million to $250 million in revenues across a range of industries. The firm’s investment strategy is to acquire companies in a variety of special situations including underperformers, corporate divestitures, turnarounds, and orphan public companies. Since its inception in 2001, Resilience has acquired 36 companies under 21 platforms with over $2 billion in revenues. The firm is based in Cleveland (www.resiliencecapital.com).

“The Mill City investment represents a significant step forward in the execution of Aero Communications’ acquisition growth strategy of purchasing businesses with experienced in-house wireless network and construction professionals who provide market-leading services to blue-chip cable and telecommunications customers throughout the United States,” said Michael Cavanaugh, a Partner at Resilience Capital Partners.

© 2014 PEPD • Private Equity’s Leading News Magazine • 1-15-14

The Gores Group Acquires Etrali

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The Gores Group has completed the acquisition of Etrali, Orange Business Services – Trading Solutions, a subsidiary of France Telecom Orange. Following the acquisition the company will be rebranded as Etrali Trading Solutions.

Etrali Trading Solutions provides voice and electronic trading infrastructure and services to companies engaged in the trading of financial products. Etrali products allow for fixed and mobile voice recording capabilities in order to meet financial regulatory requirements. The company also owns and operates a voice and data network dedicated to the trading industry. Etrali has more than 450 employees and is headquartered in Paris (http://www.orange-business.com/en/trading-solutions).

“The Gores Group is very excited to be the new majority shareholder of Etrali Trading Solutions, alongside a talented management team. The company has a rich history of creating innovative technology with a strong focus on customer service and we are confident that Etrali Trading Solutions will continue to capitalize on the growing voice and electronic related opportunities that exist with its customers. We look forward to partnering with Lionel Grosclaude and his team to help position the business as a standalone entity and accelerate its growth, both organically and through acquisitions,” said Jon Gimbel, Principal of The Gores Group.

The Gores Group makes control investments in non-core, underperforming or undervalued businesses in the United States and Europe. The firm maintains an in-house team of over 60 M&A and operations professionals in the US and Europe. The Gores Group was founded in 1987 and is headquartered in Los Angeles with additional offices in Boulder, CO and London (www.gores.com).

“This is an incredible opportunity for the company to partner with Gores. Their exceptional track record and operationally focused approach will provide the support that Etrali Trading Solutions needs for continued growth and prosperity. Their ability to invest significant capital into the business will allow us to broaden our product portfolio and provide the increasing amount of services that our customers demand,” said Lionel Grosclaude, Chief Executive Officer of Etrali Trading Solutions.

France Telecom-Orange (NYSE:FTE) is one of the world’s largest telecommunications operators with sales of €43.5 billion in 2012. The company has a total customer base of 230 million customers including 172 million mobile customers and 15 million broadband internet customers worldwide (www.orange.com).

© 2013 PEPD • Private Equity’s Leading News Magazine • 6-2-13

Sun Capital Partners Acquires S&N Communications

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Sun Capital Partners has acquired s, a regional provider of construction and maintenance services to telecom, cable, natural gas and utility companies.

S&N’s service offerings include fiber network construction, residential service connections, maintenance and underground utility locating. The company operates 20 field offices in Virginia, Maryland, North Carolina and Florida, and has a network of 250 subcontractors. Over the past five years, S&N has installed more than 22 million feet of fiber optic cable and connected approximately 500,000 homes with telecom, cable and gas service. The company is headquartered in Kernersville, NC (www.sncomm.com).

“S&N Communications is a niche business overlooked by many buyers, but has attractive cash flow characteristics,” said Marc Leder, Co-Chief Executive Officer at Sun Capital Partners. “S&N is similar to a prior successful investment in Dura-Line. We look forward to leveraging our experience and working with management to achieve an outstanding outcome.”

Sun Capital Partners is a private investment firm focused on leveraged buyouts, equity, debt, and other investments in market-leading companies that can benefit from its in-house operating professionals and experience. Sun Capital affiliates have invested in and managed more than 300 companies worldwide with combined sales in excess of $45 billion since Sun Capital’s inception in 1995. Sun Capital has offices in Boca Raton, FL; Los Angeles, CA; and New York, NY as well as affiliates with offices in London, Paris, Frankfurt, Luxembourg, Shanghai and Shenzhen (www.SunCapPart.com).

“S&N Communications is excited about the prospects our alliance with Sun Capital Partners provides. The strength of Sun Capital’s management team, experience and financial support establishes a solid partnership for continued growth,” said Allen Powell, S&N Communications CEO and President.

© 2012 PEPD • Private Equity’s Leading News Magazine • 9-10-12