Transaction Includes Long-term Carrier Services Agreement
LOS ANGELES (January 3, 2006) – Platinum Equity announced today that its portfolio company Matrix Telecom, Inc. has completed the acquisition of Global Crossing’s Small Business Group (SBG), which provides voice and data products to small- and medium-sized enterprise customers in the United States.
In addition, Global Crossing and Matrix announced they have executed a long-term carrier services agreement under which Global Crossing will provide a full suite of voice, data and IP services to Matrix and its customers. SBG’s current product offering includes switched and dedicated voice services and data applications.
“The integration of Matrix and SBG is well underway and will be seamless for customers,” said Rob Joubran, chief operating officer and treasurer for Platinum Equity. “These two businesses complement one another extremely well, and combining them enhances the capabilities of both. Our top priority during the integration process is to maintain excellent service for customers of both Matrix and SBG.”
Global Crossing divested SBG after announcing it intended to de-emphasize certain non-core areas of its business, including the small- to medium-sized enterprise space. Platinum Equity, which specializes in providing divestiture solutions for large corporations, identified the business as a strong complement to Matrix. A definitive agreement to sell SBG to Matrix was announced in March 2005.
“One of Platinum’s core strengths is our ability to grow existing portfolio companies through strategic add-on acquisitions that expand their capabilities, and the SBG acquisition is a great example of that,” said Matt Young, senior vice president for M&A at Platinum.
“We not only provided a divestiture solution to Global Crossing, which viewed the business as non-core, but we strengthened both SBG and Matrix by bringing them together,” Mr. Young said. “Moving forward, our M&A team will continue seeking additional acquisitions to further expand Matrix Telecom’s small- and medium-sized enterprise customer base.”
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, manufacturing, and entertainment distribution. Since its founding in 1995 by entrepreneur Tom Gores, Platinum Equity has acquired more than 50 businesses with more than $11 billion in aggregate revenue at time of acquisition.
About Matrix Telecom
Matrix Telecom®, Inc., a Platinum Equity company, is a fully integrated, facilities-based telecommunications carrier providing premium quality voice and data services to a nationwide customer base. Headquartered in Dallas, Texas, Matrix Telecom offers a complete line of voice, data, and Voice over IP products servicing the residential and business markets. Matrix Telecom offers wholesale products direct to other carriers, as well as retail products distributed through resellers and agents. Matrix Telecom is committed to providing customized communication services that exceed customers’ expectations for quality, value, and reliability. For more information, please visit the Matrix Telecom website at www.matrixvalue.com.
Mark Barnhill, Platinum Equity