Chile’s Entel to Divest its Shares in Telecommunications Carrier
LOS ANGELES, Calif. (March 24, 2006) – Platinum Equity and Empresa Nacional de Telecommunications (“Entel”) announced today a definitive agreement for Platinum to acquire Entel’s holdings in Americatel Corporation, one of the largest U.S.-based providers of telecommunications services to the North American Hispanic market.
Under the agreement, Platinum will acquire all of Entel International B.V.I. Corporation’s shares in Americatel. The transaction, which is subject to regulatory approval, is expected to be completed within 120 days.
Americatel is a telecommunications carrier that provides long-distance service to countries in Latin America and the Caribbean. The company’s primary market is the rapidly growing segment of Hispanics in North America seeking competitive rates for domestic and international long-distance calls.
Platinum Equity is global acquisition firm whose operations portfolio includes several telecommunications companies, including Matrix Telecom, a fully integrated, facilities-based carrier that provides voice, data and business technologies to global customers.
Johnny O. Lopez, executive vice president for global mergers and acquisitions at Platinum, said the acquisition would significantly extend Platinum’s reach in the telecom arena.
“Americatel has staked out a competitive position in a rapidly growing market,” Mr. Lopez said. “We look forward to partnering with the company to grow and create value as one of the premier providers of long-distance service from North America to Latin America and the Caribbean.”
With this transaction, Entel is divesting all of its U.S. operations.
“We are very satisfied with the outcome of Americatel’s sale process, which enables us to focus on our core business in the rest of the continent”, said Richard Büchi, Entel Corporate General Manager.
About Americatel Corporation
Americatel Corporation is one of the largest U.S.-based telecommunication carriers that provides high quality and competitively priced services specifically tailored to the needs of the U.S. Hispanic Market. This is achieved through Americatel's key products – 1010-123 (dial around code) and its presubscribed services. Americatel's success is built on two foundations: sophisticated applications using the best technology available and a constant dedication to building long lasting relationships with its customers. These factors have made Americatel one of the most respected and trusted telecommunications companies among the U.S. Hispanics.
About Platinum Equity
Platinum Equity (www.platinumequity.com) is a global M&A&O® firm specialized 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, software, telecommunications, logistics, manufacturing, and entertainment distribution. Since its founding in 1995 by entrepreneur Tom Gores, Platinum has acquired more than 60 businesses with more than $12 billion in aggregate revenue at the time of acquisition.
Entel is a leading provider of long distance, Internet and PCS telecommunications services in Chile, as well as El Salvador, Honduras and Guatemala. Its state-of-the-art technology allows the company to have global access through direct connections with over 40 international carriers. To learn more about Entel and its services, go to www.123.cl.