The Gores Group Signs Agreement to Acquire Alpheus Communications
2011 OCT 5 - (VerticalNews.com) -- The Gores Group, a leading Los Angeles-based private equity firm, announced that through an affiliate it has signed an agreement to acquire Alpheus Communications, one of the largest fiber network and data center operators in Texas. The Gores Group intends to combine Alpheus with First Communications, an existing Gores portfolio company. Genesis Park, L.P. and El Paso Corporation are the sellers. Terms of the transaction were not disclosed.
Alpheus Communications has a strong presence in Dallas/Fort Worth, Houston, Austin and San Antonio-four of the fastest growing markets in the United States. The acquisition includes more than 2,800 route miles of long-haul fiber and nearly 3,250 metro route miles, bringing the total of the First Communications network to over 10,500 fiber route miles.
"The acquisition of Alpheus Communications provides Gores with a tremendous opportunity to expand upon our current telecommunications holdings, particularly our fiber and high bandwidth transport services businesses," said Ashley Abdo, Managing Director of The Gores Group. "In addition to the network assets, the deal brings additional sales and operational experience that will help us continue to expand our holdings."
"This transaction will benefit all of our stakeholders. Alpheus has had great success in bringing better broadband services to Texas, and this is just the next chapter. No telecommunications company in America is in a better position to keep winning for its customers and employees," said Paul Hobby, Chairman and CEO, Alpheus Communications. Alpheus Communications' deep metro network, as well as its reputation and long-term customer tenures, were key considerations for the acquisition. In addition, First Communications can easily layer its core services, including Premium Ethernet, Ethernet DIA and Essential T1, onto the existing Alpheus platform to meet the specific needs of any size business.
Waller Capital Partners acted as the exclusive Financial Advisor to both Gores and Alpheus. About Alpheus Communications Alpheus Communications (http://www.alpheuscommunications.com) is a provider of high bandwidth transport, Direct Internet Access (DIA) and data center services for carrier, government and enterprise customers. With owned facilities in Dallas-Fort Worth, Houston, San Antonio, Austin, Corpus Christi and the Rio Grande Valley, Alpheus is flexible, content-neutral and responsive to customer needs when low-latency and uptime are essential. As the preferred fiber backbone for Metro Texas, Alpheus is in a unique position to support mission-critical information technology functions and cloud computing solutions through resilient SAS 70-compliant data center platforms for colocation and disaster recovery. 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, 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. Headquartered in Los Angeles, the Gores Group maintains offices in Boulder, CO, and London. For more information, please visit www.gores.com. About Genesis Park, L.P. Genesis Park is a Houston-based private equity firm focusing on buyouts, partnering strategies with public corporations, and growth financing. Focused on technology and energy markets Genesis Park brings capital, management skills, commercial execution capabilities and a depth of experience in mergers and acquisitions. For more information please visit www.genesis-park.com.
Keywords: Electronics, Investing and Investments.
This article was prepared by VerticalNews Telecommunications editors from staff and other reports. Copyright 2011, VerticalNews Telecommunications via VerticalNews.com.