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Alliance Entertainment acquired from Source Interlink Companies by Platinum Equity
Alliance Entertainment acquired from Source Interlink Companies by Platinum Equity
Read MorePlatinum Equity and The Gores Group Acquire Alliance Entertainment from Source Interlink
Firms Form Joint Venture That Will Operate CD-DVD-Game Distributor as a Standalone Business LOS ANGELES, CA (September 1, 2010) – Platinum Equity and The Gores Group today announced that they have acquired Alliance Entertainment from Source Interlink Companies, Inc. Financial terms of the transaction were not disclosed. Alliance Entertainment is the largest wholesale distributor of CD, DVD and videogame titles in the United States, providing distribution, fulfillment and other services to such retailers as Barnes & Noble, Borders, Amazon.com, Target.com and BestBuy.com. “The market for distributing media content is highly fragmented and rapidly evolving,” said Johnny Lopez, the partner at Platinum leading the Alliance Entertainment investment. “However, we have a great deal of experience assisting companies to thrive within industries in flux. With our combined operational and financial support, M&A expertise, and the company’s established management team, Alliance Entertainment will have all the elements it needs to grow.” Alliance Entertainment manages a physical inventory of 400,000 CD, DVD and videogame titles in its state-of-the-art distribution center in Shepherdsville, KY. The company has 2,900 unique customers and ships to 14,500 locations throughout the United States. Alliance Entertainment also specializes in the development of highly-customized technology and fulfillment services supporting e-commerce. “This is a fundamentally solid business, but it faces substantial challenges in a rapidly changing distribution market,” said Steve Yager, Senior Managing Director of The Gores Group. “We look forward to helping navigate those changes and maximize potential opportunities for growth.” The company was acquired and will be operated by Project Panther Holding Corporation, a joint venture between Platinum Equity and The Gores Group. “This is an exciting opportunity for our company, our customers and our suppliers,” said Alan Tuchman, Alliance Entertainment CEO, who has been with the company for 25 years and will continue leading the business. “This transaction will provide us with additional operational and financial resources to continue our long-standing, proven commitment to customer service. We are now well positioned to grow the business going forward.” A team of operations specialists is now working with the Alliance Entertainment management team to transition the business to new ownership. "This transaction will allow Source Interlink to focus on the continued growth and investment in our core competencies of wholesale magazine distribution and the further integration of our enthusiast media properties across multiple platforms,” said Michael L. Sullivan, CEO of Source Interlink. “Throughout this process it was clear that Platinum Equity and The Gores Group value Alliance Entertainment’s capable management team, talented employees and dedicated customers. We are pleased to have identified the right buyer and are confident the business is in good hands.” About Platinum Equity Platinum Equity (www.platinumequity.com) is a global M&A&O® firm specializing in the merger, acquisition and operation of companies that provide services and solutions to customers in a broad range of business markets, including information technology, telecommunications, logistics, metals services, manufacturing and distribution. Since its founding in 1995 by Tom Gores, Platinum Equity has completed over 100 acquisitions with more than $27.5 billion in aggregate annual revenue at the time of acquisition. About The Gores Group, LLC The Gores Group LLC is a private equity firm focused on acquiring controlling interests in mature and growing businesses which can benefit from the firm’s operating experience and flexible capital base. The firm combines the operational expertise and detailed due diligence capabilities of a strategic buyer with the seasoned M&A team of a traditional financial buyer. The Gores Group, LLC, which was founded in 1987 by Alec E. Gores, has become a leading investor having demonstrated over time a reliable track record of creating substantial value in its portfolio companies alongside management. The firm’s current private equity fund has committed equity capital of $2.9 billion. Headquartered in Los Angeles, The Gores Group, LLC maintains offices in Boulder, CO, and London. For more information, please visit www.gores.com About Source Interlink Companies Inc. Source Interlink Companies (www.sourceinterlink.com) is the leading publisher of magazines and on-line content for enthusiast audiences, as well as the second largest wholesale distributor of magazines and provider of related in-store services across North America. Its media division creates content for more than 70 publications, 90 websites, events, television, and radio. A portfolio which includes a number respected brands such as Motor Trend, Automobile, Hot Rod, Automotive.com, Surfer and Intellichoice.
Read MoreMegaPath, Covad, Speakeasy Merger Closes
Creates New Communications Powerhouse, Offering a Full Range of Nationwide IP Voice, Security, VPN and Internet Services SAN JOSE, Calif.– (BUSINESS WIRE)--MegaPath, Covad and Speakeasy today announced regulatory approval and the completion of their merger, creating a next generation Managed Services Local Exchange Carrier (MSLEC). The new company will have relationships with more than 85,000 business customers and over 4,500 partners throughout North America. The combined company will be called MegaPath and will operate one of the largest end-to-end facilities-based IP communications networks in the country. “For too long in the telecommunications industry, customer service and reliability have taken a back seat,” said D. Craig Young, Chairman and CEO of MegaPath. “With the combination of MegaPath, Covad and Speakeasy, we are bringing to market a leading nationwide IP network to deliver a complete line of end-to-end managed services, including voice, data and security. Small, medium and large enterprises will now benefit from a new service provider that is willing to invest in advanced services, while remaining heavily focused on customer service.” With the combination of MegaPath, Speakeasy and Covad, the new MegaPath will provide a complete voice, access, private networking and managed security solution for business customers of all sizes with a turnkey solution for conducting business and communicating with customers, partners and employees. In addition, its leading voice services combine broadband and voice capabilities with Quality of Service (QoS) monitoring for superior call clarity, which is backed up by industry-leading service level agreements (SLAs). The new MegaPath remains a privately held company. Moving forward, it will serve the market through two divisions: a wholesale operating division and a direct, business markets division. The Company’s executive team includes D. Craig Young, former CEO of MegaPath, who now serves as Chairman and CEO; Pat Bennett, former CEO of Covad, as Chief Strategy Officer and Head of Wholesale Markets; and Bruce Chatterley, former CEO of Speakeasy, as President of the Business Markets unit in charge of all non-wholesale customer sales, service and marketing. Financial terms of the merger were not disclosed. About MegaPath MegaPath operates one of the largest end-to-end communications networks in the country. In 2010 the company combined with Speakeasy and Covad to form a single company providing a full range of nationwide IP voice, security, and VPN and Internet services. MegaPath helps more than 85,000 businesses of all sizes to easily and securely communicate between their headquarters, employees and business partners to lower costs, increase security and enhance employee productivity. To learn more about MegaPath's managed IP data, voice and security services, please visit www.megapath.com or call 1-877-MegaPath (634-2728).
Read MorePlatinum Equity Portfolio Brand Glastron Boats Launches 2011 Models from New Facility
Boat builder hosts dealers at Open House event in new facility Cadillac, Michigan, August 18, 2010 – Rec Boat Holdings announces the launch of its 2011 model year line up for Glastron Boats, with an Open House event conducted at the new manufacturing facility in Cadillac, Michigan. Dealers from all over North America and International markets attended the series of business meetings with opportunities to meet with the new management team, new plant familiarization tours and introductions to new sales and marketing programs. Along with the transition of production to the new Cadillac, MI manufacturing facility, Glastron’s 2011 runabout and Ski & Fish models up through 22-feet, have an all new hull construction delivering a new look and feel with a completely finished inner liner and floor construction. These new hulls provide a cleaner, finished look in storage compartments and other interior openings. Brand new for model year 2011 is the MX 180 BR, a superb entry into the bowrider outboard package market. Designed to offer an affordable boat, motor and trailer package to new owners, the MX 180 BR sports sharp new gelcoat colors including the trademarked Glastron sphere design. Plenty of amenities are standard on board with an AM/FM stereo with two speakers and MP3 adapter, finished ski locker with mat and hinged lid, molded under seat storage with latch and integrated molded swim platform. An XL package is also available for the MX 180 BR, providing additional options such as full, side glass wraparound windshield, 3-step boarding ladder, convenience package, flip-up bucket seat (1), ski pylon, snap-in carpet and stainless steel rubrail insert and drink holders. The “Base Real Deal Retail Price” for the MX 180 BR, powered with a 90-hp outboard engine plus a standard custom-matched trailer, will be $16,998 (US). Outboard power options are available up to 150 horsepower. “New emission regulations from the EPA are forcing a significant increase in the cost of stern drive engines which will affect offerings in the smaller boat segment,” stated Roch Lambert, Group President, Rec Boat Holdings. “Outboard engines offer a clean, lightweight power alternative with improved fuel efficiency and smoother operation. The new outboard powered MX 180 BR brings the affordability to boating back in line with consumer demand and we’re excited to be ahead of the game by offering a boat, motor and trailer package to a broader base of consumers,” Lambert concluded. Since the purchase of Glastron by Platinum Equity earlier this year, the manufacturing was moved from the Little Falls, MN factory to the Cadillac, MI facility, introducing 22 boat models with new processes, features and colors to a brand new production facility. The new operation is now 100% functional with improved engineering resources and administrative operations. “In a very short amount of time and solid commitment from Platinum, we’ve accomplished a major transition of production and resources; all without disruption to our selling networks,” Lambert stated. “The dealers and distributors in attendance this week are very pleased with what they saw. Their confidence is secure, which will result in a very exciting and successful 2011 model year for Glastron,” Lambert added. New Glastron models will be displayed throughout major boat shows in the coming season as well as available for more information and detail specifications at www.glastron.com. The Recreational Boat Group, a division of Platinum Equity affiliate PBH Marine Group, LLC, is engaged in the manufacturing, design, distribution and marketing of world-class boat brands Four Winns, Glastron and Wellcraft. The Fishing Boat Group division of PBH Marine Group, LLC includes the Champion, Ranger, Stratos and Triton brands. For More Information: Leone Chirhart 877.811.1628 lchirhart@glastron.com
Read MoreExcel Telecommunications Acquisition Closed by Platinum Equity Portfolio Company Matrix Telecom
DALLAS – August 3, 2010 - Matrix Telecom Inc. ("Matrix"), a Platinum Equity company and provider of voice and data services to small and medium enterprise and residential customers across the United States, today announced it has completed the acquisition of substantially all the customer relationships and assets of Irving-based Comtel Telcom Assets LP, operating as Excel Telecommunications ("Excel") from Denham Capital. Financial terms of the transaction were not disclosed. "We are committed to making Matrix the highest-quality, most affordable choice for wholesale voice services in the telecommunications industry," said Charles G. "Chuck" Taylor, Jr., President and CEO of Matrix. "Excel provides Matrix with complementary network coverage, state-of-the art switching, loyal and valued customers and an experienced, customer-centric work force. Matrix and Excel are a perfect fit." Excel Telecommunications provides a suite of high-quality, integrated voice and data communications products and services to residential, commercial and carrier customers. Based on its Veraz softswitching platform, it has developed and deployed next generation, IP-based voice and data services. A team of Platinum in-house operations specialists is working with Matrix and Excel management to integrate the two businesses. Excel's services will continue to be marketed under their existing brand names. "We have a lot of experience seamlessly integrating complex telecom acquisitions and the transition process is already well under way," said Rob Joubran, partner and treasurer for Platinum Equity. "Matrix and Excel are complementary businesses with a shared commitment to delivering the highest levels of customer service. We expect both will grow even stronger as a result of this combination." The acquisition is Matrix's third in the last four years, having successfully integrated the small business group of Global Crossing in 2006 and certain assets of the former Trinsic Communications in 2007. About Matrix Telecom, Inc. Matrix Telecom, Inc., (www.matrixbt.com), a Platinum Equity company, operating as Matrix Business Technologies and Trinsic, Powered by Matrix, is an integrated telecommunications provider serving consumers and small and medium size businesses nationwide. Matrix is licensed as a facilities-based CLEC and Long Distance Provider in 49 states plus the District of Columbia. It has 200 employees with headquarters in Dallas, TX and operations in Rochester, NY and Atmore, AL. About Platinum Equity Platinum Equity (www.platinumequity.com), a global M&A&O® firm specializes in the merger, acquisition and operation of companies that provide services and solutions to customers in a broad range of business markets, including information technology, telecommunications, industrials, logistics, manufacturing, and distribution. Since its founding in 1995 by Tom Gores, Platinum Equity has completed more than 100 acquisitions with more than $27.5 billion in aggregate annual revenue at the time of acquisition. About Excel Telecommunications Excel Telecommunications (www.excel.com) is a leading, facilities-based provider of a rich suite of high quality, integrated voice and data communications products and services to residential, commercial and carrier customers. Excel offers a wide range of switched and dedicated voice and data services, including domestic and international direct-dial and dial-around long distance, toll-free, wholesale pre-paid long distance and local services, as well as carrier transport, conferencing, hosting and other value-added services, to commercial, carrier and residential customers. Based on its Veraz softswitching platform, Excel has developed and deployed its next generation, IP-based voice and data services, including SIP trunking, hosted IP PBX, IP VPNs and dedicated data services. The Company owns and operates a robust, nationwide Class IV/V VoIP-FGD enabled network that forms a mesh of connectivity across 9 major U.S. metropolitan markets. Consisting of long haul fiber paths, numerous routers, servers and switching equipment, the network provides on-net coverage of virtually every U.S. LATA. Excel also maintains interconnect agreements with more than 300 carriers. Contact: Dan Whelan Platinum Equity (310) 282-9202 dwhelan@platinumequity.com Anna Porteus Matrix Telecom, Inc. (301) 610-4354 aporteus@matrixvalue.com
Read MorePlatinum Equity Portfolio Company Acument Completes Divestiture of Avdel and GEC Units
LOS ANGELES, CA--(Marketwire - August 3, 2010) - Platinum Equity today announced that Acument Global Technologies has completed the sale of Acument's Avdel and Global Electronics & Commercial (GEC) business units to Asia Trading Company Limited, a company owned indirectly by funds advised by CVC Asia Pacific and Standard Chartered Private Equity Limited (SCPEL). Terms of the divestiture were not disclosed. Avdel manufactures and markets blind fasteners (rivets) for customers around the world. Avdel is based in London with operations, sales and distribution capabilities in the UK, US, Canada and Western Europe. GEC manufactures and markets fastener solutions for customers in the global electronics, industrial and commercial, construction and Asia automotive segments. GEC is based in Singapore with operations throughout Asia and in the US and Australia. "Our ability to effect operational change in the business created an attractive opportunity to monetize part of our investment while at the same time continuing to support Acument's strategic plans," said Adam Cooper, senior vice president at Platinum who led the sale process. "Acument has succeeded in spite of significant obstacles. The sale of these units and the strength of the remaining business going forward reflect many years of hard work by countless people in and around the company." Mr. Cooper applauded CVC/SCPEL as a valued transaction partner and said he believes Avdel and GEC will have great success under new ownership. "This was a complex, multi-national divestiture and through an efficient and collaborative process we created a solution that works well for everyone," said Mr. Cooper. Platinum acquired Acument in 2006 from Textron Inc. Beginning in late 2008 Acument faced rapidly falling revenue caused by economic dislocation and steep declines in global automotive production. Over the nearly two years that followed, the Platinum operations team partnered closely with Acument management to develop and execute a global restructuring initiative. As part of the restructuring effort, Acument aggressively scaled its cost structure while working closely with customers, lenders and other stakeholders to stabilize the business and ensure continuity of supply. "Thanks to a lot of determination and a willingness to make some difficult but necessary decisions, we worked through the worst of the crisis and came out the other side stronger, more nimble and positioned to succeed," said Bryan Kelln, principal and head of portfolio operations at Platinum. "It was a collaborative effort, and a testament to Platinum's M&A&O approach and experience helping companies navigate through turbulent times." Following the sale of Avdel and GEC, Acument remains a leader in engineered mechanical fastening products and services for the transportation market, including automotive, heavy truck and bus, off-highway equipment, military and aerospace. "Acument is a much stronger competitor in the fastener industry today, thanks to a healthy balance sheet and a strong focus on improving operational performance," said Acument CEO Rick Dauch. "As a result, we are now well positioned to invest in and grow our core transportation businesses." Acument was advised by Goldman Sachs, Paul Hastings and Baker & McKenzie. CVC/SCPEL was advised by Bank of America Merrill Lynch and Clifford Chance. About Acument Global Technologies, Inc. Headquartered in Troy, Mich., USA, Acument Global Technologies, Inc., is among the world's leading providers of mechanical fastening products and services for the transportation market, including engineered fastening systems, inventory management services, and application engineering support. With more than 2,600 employees at facilities in North America, South America and Europe, Acument supplies fastening products, systems and services to customers around the world. For more information about Acument Global Technologies: www.acument.com About Platinum Equity Platinum Equity (www.platinumequity.com) is a global M&A&O® firm specializing in the merger, acquisition and operation of companies that provide services and solutions to customers in a broad range of business markets, including information technology, telecommunications, logistics, metals services, manufacturing and distribution. Since its founding in 1995 by Tom Gores, Platinum Equity has completed over 100 acquisitions with more than $27.5 billion in aggregate annual revenue at the time of acquisition.
Read MoreTriton Boats Acquired from Brunswick by Platinum Equity Portfolio Company Fishing Holdings
FLIPPIN, Ark. (July 29, 2010) – Fishing Holdings, LLC, a premier manufacturer and marketer of fiberglass fishing boats owned by an affiliate of Platinum Equity, announces its acquisition of Triton Boats from Brunswick Corporation. Terms of the transaction are not disclosed.Triton founder Earl Bentz will join Fishing Holdings and resume his role at the helm of Triton Boats. Additionally, several key members of Triton's executive management and sales representative group will remain on board the Triton team and will continue to lead the brand from their Tennessee office."This move creates an exciting opportunity to reenergize the Triton brand. As we move ahead we will look to our roots and to our dedication to the fishing community on which the Triton brand was founded," said Bentz. "I have been working closely with many Triton dealers since I started the company. I look forward to continuing that collaboration with our dealer base and to serving our loyal customers into the future."Echoing Bentz's comments, Randy Hopper, President of Fishing Holdings said, "We are extremely pleased to have Earl and his senior management team join our organization. The acquisition will allow us to leverage our world-class manufacturing operations and further strengthen our unwavering commitment to fishing, boating families and competitive tournament angling."Triton fiberglass boats will be built in Flippin, Ark. where production will begin in Fall of 2010. Brunswick will continue to manufacture Triton aluminum boats under a license agreement. "We are excited to welcome Earl Bentz and the Triton family of dealers and customers to our team," said Louis Samson of Platinum Equity. "Investing in a high-quality brand like Triton is another opportunity to demonstrate our commitment to succeed in the industry and our focus on supporting our portfolio companies in their growth and strategic plans."Fishing Holdings was advised by Stephens Inc. and Latham & Watkins LLP in connection with the transaction.About Triton BoatsTriton Boats was founded in 1996 and is one of the most recognized brands in fishing. From professional, tournament-grade bass boats to multispecies rigs and saltwater vessels, Triton has been among the leaders in bringing added features and comfort to modern fishing and recreational boats. More information is available at www.tritonboats.com.About Fishing HoldingsFishing Holdings, headquartered in Flippin, Ark., is owned by an affiliate of Platinum Equity. Fishing Holdings is the nation's premier manufacturer of fiberglass fishing boats, including the legendary Ranger, Stratos and Triton brands. More details, product information and specific offerings can be found by visiting www.rangerboats.com, www.stratosboats.com and www.tritonboats.com.About Platinum EquityPlatinum Equity is a global M&A&O® firm specializing in the merger, acquisition and operation of companies that provide services and solutions to customers in a broad range of business markets, including information technology, telecommunications, logistics, metals services, manufacturing and distribution. Since its founding in 1995 by Tom Gores, Platinum Equity has completed over 100 acquisitions with more than $27.5 billion in aggregate annual revenue at the time of acquisition. More information is available at www.platinumequity.com.
Read MorePlatinum Equity Portfolio Company Ryerson Completes Buyout of China Joint Venture
CHICAGO, July 12 -- Ryerson Holding Corporation ("Ryerson"), a leading distributor and processor of metals in North America, today announced that via its subsidiaries it has acquired Van Shung Chong Holdings' ("VSC") 20 percent stake in Ryerson China Limited, a joint venture between Ryerson and VSC formed in 2006. Ryerson China Limited is now a wholly-owned Ryerson subsidiary. Terms of the transaction were not disclosed."Increasing our investment and acquiring the joint venture outright reflects our commitment and confidence in the Chinese market," said Frank Munoz, President of Ryerson China. "With our substantial footprint in China, Ryerson will continue its growth strategy to effectively serve the local Chinese market as well as our international and U.S. customers." Ryerson China Limited was formed as a partnership with VSC and was previously known as VSC-Ryerson China Limited.Ryerson originally held 40 percent of the joint venture when the partnership was formed and subsequently increased its ownership to 80 percent in the fourth quarter of 2008. Ryerson China Limited is based in Shanghai and operates processing and service centers in Guangzhou, Dongguan, Kunshan, Tianjin and Wuhan, along with a sales office in Shanghai. Ryerson is the only North American metals service center with a significant presence in China, the largest metals consuming market in the world.Ryerson expects its presence in China will continue to grow."As we solidify and strengthen our presence in the Chinese market we will evaluate new locations in the region that present compelling growth opportunities and allow us to better serve our customers," said Mr. Munoz.About RyersonRyerson is a leading North American processor and distributor of metals, with operations in the United States, Canada and Mexico, as well as in China. The Company distributes and processes various kinds of metals, including stainless and carbon steel and aluminum products.About Platinum EquityPlatinum Equity is a global M&A&O® firm specializing in the merger, acquisition and operation of companies that provide services and solutions to customers in a broad range of business markets, including information technology, telecommunications, logistics, metals services, manufacturing and distribution. Since its founding in 1995 by Tom Gores, Platinum Equity has completed more than 100 acquisitions with more than $27.5 billion in aggregate annual revenue at the time of acquisition.Contact:Terence R. Rogers, EVP and CFO of Ryerson Inc. +1-773-788-3720, terence.rogers@ryerson.com
Read MoreCovad and Megapath Announce Merger Agreement
Merger Will Combine Nation’s Largest IP Broadband Footprint with Complete Suite of Managed Services San Jose and Costa Mesa, CA, March 31, 2010 – Covad Communications Company, a leading national provider of IP broadband services, and MegaPath Inc., a leading provider of managed IP data, voice and security services in North America, today announced an agreement to combine the operations of Covad and MegaPath.Pending federal and state regulatory approvals, the transaction will create one of the largest managed service local exchange carriers (MSLEC) in the United States. The combined businesses will have the largest Ethernet, DSL and T1 footprint in North America and be the only MSLEC capable of providing a full range of Internet, voice, security and VPN services nationwide.“This transaction brings together two industry leaders who will focus on expanding service offerings and distribution channels to further our leadership positions in the SMB, enterprise and wholesale markets,” said D. Craig Young, MegaPath CEO and the new Executive Chairman of the combined businesses. “By leveraging the strengths of each company, we will provide customers and partners with expanded expertise, broader innovative services and a powerful network that simplifies the way they communicate and conduct business online.”“We will continue to provide innovative services and superior automation to our wholesale partners, and by adding MegaPath’s leading managed service offerings, we will further enhance the value we deliver to the market,” said Pat Bennett, CEO of Covad , who will continue as Chief Executive Officer. “The combination of these two companies creates a powerful new business model that provides users and partners with the industry-leading connectivity and services they require to support their critical business communications needs.”Covad offers IP broadband services in more than 4,400 central offices nationwide through its commercial and wholesale distribution channels. Covad wholesale partners include leading providers such as AT&T, Verizon Business and Sprint; MegaPath delivers value-added communication services, including hosted VoIP, managed security, MPLS VPNs for connecting multiple sites, and SSL VPNs for connecting remote users and business partners. MegaPath distributes its services via a large direct sales force and channel sales partnerships, and has over 19,000 direct SMB and enterprise customers.By combining Covad’s robust network infrastructure with MegaPath’s wide selection of products and value-added services, the transaction promises to provide the companies’ partners and customers with a superior selection of cost-effective IP voice, data communications and security solutions.“This is a great deal for Covad and MegaPath stakeholders and customers, creating an industry leader with the agility, expertise and resources to address customers’ rapidly growing and changing communications needs,” said Johnny Lopez, partner at Platinum Equity, which owns Covad. “With such complementary businesses, partners and customers will quickly see new services and capabilities that provide them even greater value, while the company realizes improved efficiencies and greater profitability, and enhanced opportunities for growth through acquisition.”The combined businesses will be owned by Platinum and MegaPath investors. Terms of the deal were not disclosed. The transaction is subject to federal and state regulatory approvals and is expected to close by the end of Q3 2010.About CovadCovad is a leading national provider of integrated voice and data communications, combining broadband solutions with mission-critical service and support to create a superior customer experience. The company provides a wide range of access and hub aggregation services, including Ethernet, DSL, and T1. Covad manages a robust, next-generation IP/MPLS network that efficiently delivers integrated voice, video, and data solutions. With an expanded footprint supported in part by more than 4,400 COs, Covad broadband services are currently available across the nation in 45 states and 240 metropolitan statistical areas (MSAs) and can be purchased by approximately 11 million businesses, representing over 60 percent of all U.S. businesses. Covad is located at 2220 O’Toole Avenue, San Jose, CA 95131. www.covad.com.MegaPath Contact:Kristine GagerWelz & Weisel Communications(703) 218.3555kristine@w2comm.com Covad Contact: Christian PinkstonPinkston Group(202) 423.6611Pinkston@pinkstongroup.com Platinum Contact: Dan WhelanPlatinum Equity(310) 282.9202dwhelan@platinumequity.com
Read MoreMatrix Telecom Acquires Excel Telecommunications from Denham Capital
DALLAS and BOSTON – March 15, 2010 - Matrix Telecom Inc. (“Matrix”), a Platinum Equity company and provider of voice and data services to small and medium enterprise and residential customers across the United States, and Denham Capital (“Denham”), an energy - and commodities-focused global private equity firm, today announced they have signed a definitive agreement for Matrix to acquire substantially all the customer relationships and assets of Irving-based Comtel Telcom Assets LP, operating as Excel Telecommunications (“Excel”) from Denham. Financial terms of the transaction were not disclosed. “By acquiring Excel, we are demonstrating our commitment to making Matrix the highest-quality, most affordable choice for wholesale voice services in the telecommunications industry,” said Charles G. “Chuck” Taylor, Jr., President and CEO of Matrix. “This acquisition builds on other recently announced Matrix initiatives to broaden its domestic and international wholesale voice services offering.” Excel Telecommunications provides a suite of high quality, integrated voice and data communications products and services to residential, commercial and carrier customers. Based on its Veraz softswitching platform, it has developed and deployed next generation, IP-based voice and data services. Excel provides Matrix with complementary network coverage, state-of-the art switching, efficient back-office technologies, highly loyal customers and an experienced, customer-centric work force. “Matrix specializes in smoothly integrating complex telecom acquisitions. It was extremely important to Excel to identify an acquirer in whom our customers and employees can be confident,” added Jerry McGee, CEO of Excel. “In addition to its wholesale strategy, the Matrix business and residential customer bases closely mirror those of Excel, with similar service bundles and customer support models geared to customer satisfaction and loyalty. Matrix and Excel are a great fit.” The acquisition is Matrix’s third in the last four years, having successfully integrated the small business group of Global Crossing in 2006 and certain assets of the former Trinsic Communications in 2007. “Matrix has a strong track record seamlessly integrating businesses and the ability to grow through strategic add-on acquisitions,” said Brad Holtmeier, Vice President at Platinum who is leading the investment. “This acquisition is great news for Excel’s valued customers and further demonstrates Matrix and Platinum’s commitment to industry leadership.” “Since Denham’s acquisition of Excel in late 2005, the management team has transformed the company into an attractive platform for future growth,” said Bill Zartler, Managing Partner and head of Denham's Energy Infrastructure Group. “As with other recent exit transactions Denham has concluded, including the sale of SunRay Renewable Energy and Trinity Coal, Matrix saw the value in the platform that management and Denham created, and is well-suited to take Excel to the next level.” The transaction is expected to close in the second quarter of 2010 and is subject to, among other conditions, receipt of approvals of the FCC and applicable state regulatory authorities. About Matrix Telecom, Inc. Matrix Telecom, Inc., (www.matrixbt.com), a Platinum Equity company, operating as Matrix Business Technologies and Trinsic, Powered by Matrix, is an integrated telecommunications provider serving consumers and small and medium size businesses nationwide. Matrix is licensed as a facilities-based CLEC and Long Distance Provider in 49 states plus the District of Columbia. It has 200 employees with headquarters in Dallas, TX and operations in Rochester, NY and Atmore, AL. About Platinum Equity Platinum Equity (www.platinumequity.com), a global M&A&O® firm specializes in the merger, acquisition and operation of companies that provide services and solutions to customers in a broad range of business markets, including information technology, telecommunications, industrials, logistics, manufacturing, and distribution. Since its founding in 1995 by Tom Gores, Platinum Equity has completed nearly 100 acquisitions with more than $27.5 billion in aggregate annual revenue at the time of acquisition. About Excel Telecommunications Excel Telecommunications (www.excel.com) is a leading, facilities-based provider of a rich suite of high quality, integrated voice and data communications products and services to residential, commercial and carrier customers. Excel offers a wide range of switched and dedicated voice and data services, including domestic and international direct-dial and dial-around long distance, toll-free, wholesale pre-paid long distance and local services, as well as carrier transport, conferencing, hosting and other value-added services, to commercial, carrier and residential customers. Based on its Veraz softswitching platform, Excel has developed and deployed its next generation, IP-based voice and data services, including SIP trunking, hosted IP PBX, IP VPNs and dedicated data services. The Company owns and operates a robust, nationwide Class IV/V VoIP-FGD enabled network that forms a mesh of connectivity across 9 major U.S. metropolitan markets. Consisting of long haul fiber paths, numerous routers, servers and switching equipment, the network provides on-net coverage of virtually every U.S. LATA. Excel also maintains interconnect agreements with more than 300 carriers. About Denham Capital: Denham Capital is a leading global private equity firm, with offices in Boston, Houston, Short Hills, New Jersey and London. With approximately $4.3 billion of invested and committed capital, Denham makes direct investments in all segments of the energy and commodities value chain, including oil and gas, mining, timber, power, carbon assets and energy-related infrastructure and services. The firm invests globally, with investments currently in the US, Canada, South America, Europe, Russia/CIS, Asia and Australia, and across all parts of the capital structure and all stages of the corporate and asset lifecycle, from development projects to mature, operating businesses. Denham typically targets investments in the $50 million to $250 million range. For more information about Denham Capital, visit www.denhamcapital.com. Denham Capital does not provide investment advisory services to the public. Denham Capital Management “SM” is a trademark of Denham Capital Management LP. For Further Information: Matrix Telecom, Inc. Kevin P. Gorman kgorman@matrixbt.com (585) 530-3714 Denham Capital Gina M. Sorice gsorice@cjpcommunicaitons (212) 279–3115 , ext. 243 Platinum Equity Daniel Whelan dwhelan@platinumequity.com (310) 282-9202
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