M&A Deal Summary

PAETEC Holdings Acquires US LEC

On August 14, 2006, PAETEC Holdings acquired communications company US LEC from Quadrangle Group, Thomas H. Lee Partners and Bain Capital Private Equity for 1.3B USD

Acquisition Highlights
  • This is PAETEC Holdings’ 1st transaction in the Communications sector.
  • This is PAETEC Holdings’ largest (disclosed) transaction.
  • This is PAETEC Holdings’ 1st transaction in the United States.
  • This is PAETEC Holdings’ 1st transaction in North Carolina.

M&A Deal Summary
Date 2006-08-14
Target US LEC
Sector Communications
Buyer(s) PAETEC Holdings
Sellers(s) Quadrangle Group
Thomas H. Lee Partners
Bain Capital Private Equity
Deal Type Merger
Deal Value 1.3B USD

Target

US LEC

Charlotte, North Carolina, United States
website
US LEC provided voice and data communications services to medium and large size businesses in the Southeast and Mid-Atlantic U.S.

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Buyer(S) 1

Buyer

PAETEC Holdings

Fairport, New York, United States

website

Category Company
Founded 1998
Sector Communications
Employees4,639
DESCRIPTION

PAETEC Holdings is an integrated communications provider offering local, domestic and international long distance services, high speed Internet access, eCommerce and other data services to medium and large sized businesses, colleges and universities, hospitals, governmental organizations and affinity groups throughout the United States.

DEAL STATS #
Overall 1 of 4
Sector (Communications) 1 of 4
Type (Merger) 1 of 2
State (North Carolina) 1 of 1
Country (United States) 1 of 4
Year (2006) 1 of 1
Size (of disclosed) 1 of 4
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2007-09-17 McLeodUSA

Cedar Rapids, Iowa, United States

McLeodUSA, Inc. is a provider of managed IP-based communications services to small and medium-sized enterprises, and traditional circuit-switched telephony services to commercial customers in the Midwest, Rocky Mountain, Southwest and Northwest regions of the nation.

Buy $557M

Seller(S) 3

SELLER

Quadrangle Group

New York, New York, United States

Investor Investor

website

Category Private Equity Firm
Founded 2000
PE ASSETS 3.0B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Quadrangle Group is a specialist private equity firm focused on the information and communications technology services sectors. Quadrangle was formed in 2000 and is based in New York City.

DEAL STATS #
Overall 2 of 20
Sector (Communications) 1 of 7
Type (Merger) 1 of 1
State (North Carolina) 1 of 1
Country (United States) 2 of 16
Year (2006) 2 of 4
Size (of disclosed) 6 of 9
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2006-08-01 DHI Group

Centennial, Colorado, United States

DHI Group is a provider of specialized career websites for professional communities, including technology and engineering, financial services, energy, healthcare, and security clearance. DHI Group was incorporated in 1991 and is based in Centennial, Colorado.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2006-09-02 NTELOS Holdings

Waynesboro, Virginia, United States

NTELOS Holdings Corp. is an integrated communications provider including wireless phone service, local and long distance telephone services, high capacity transport, data and voice services for Internet access and wide area networking and IPTV-based video services.

Sell -
SELLER

Thomas H. Lee Partners

Boston, Massachusetts, United States

Investor Investor Investor Investor Investor

website

Category Private Equity Firm
Founded 1974
PE ASSETS 25.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Thomas H. Lee Partners, LP (THL) is a private equity firm that seeks buyout, expansion, consolidation, distressed, and recapitalization investments across various industries. Sectors of interest include business and information services, consumer products/retail, financial services, healthcare, industrial, and media/communications. THL looks to invest $100 to $400 million in companies valued up to $2.5 billion. Thomas H. Lee Partners, LP was formed in 1974 and is based in Boston, Massachusetts.

DEAL STATS #
Overall 9 of 53
Sector (Communications) 1 of 3
Type (Merger) 1 of 2
State (North Carolina) 1 of 3
Country (United States) 6 of 44
Year (2006) 1 of 3
Size (of disclosed) 12 of 21
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2006-05-31 Intrado

Omaha, Nebraska, United States

Intrado is a cloud-based, global technology partner to clients around the world. The Company's solutions connect people and organizations at the right time and in the right ways, making those mission-critical connections more relevant, engaging, and actionable - turning Information to Insight. Intrado was formed in 1986 and is based in Omaha, Nebraska.

Buy $3.0B
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2006-11-16 iHeartMedia

San Antonio, Texas, United States

iHeartMedia is a diversified media and entertainment company with three reportable business segments, iHeartMedia, Americas outdoor advertising, and International outdoor advertising. iHeartMedia is based in San Antonio, Texas.

Buy $26.7B
SELLER

Bain Capital Private Equity

Boston, Massachusetts, United States

Investor Investor Investor Investor Investor

website

Category Private Equity Firm
Founded 1984
PE ASSETS 44.2B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Bain Capital Private Equity (BCPE), is the private equity investment arm of alternative asset management firm, Bain Capital. BCPE targets leveraged buyout and growth capital transactions in a wide variety of industries including information technology, communications, media, healthcare, industrial/manufacturing, retail/consumer, and financial services. Bain Capital is based in Boston with additional offices in New York, London, Mumbai, Hong Kong, Shanghai, Tokyo, and Munich.

DEAL STATS #
Overall 18 of 138
Sector (Communications) 2 of 3
Type (Merger) 1 of 10
State (North Carolina) 2 of 3
Country (United States) 17 of 84
Year (2006) 2 of 6
Size (of disclosed) 20 of 44
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2006-08-01 Greatview Aseptic Packaging

Beijing, China

Greatview Aseptic Packaging is an integrated provider of aseptic packaging and related services globally. Greatview Aseptic Packaging was founded in 2001 and is based in Beijing, China.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2006-09-01 Applied Systems

University Park, Illinois, United States

Applied Systems is a provider of cloud-based software that powers the business of insurance. The Company develops software for independent insurance agents, brokers, managing general agents, and insurance companies, as well as banks and other financial institutions with insurance operations. Applied Systems was founded in 1983 and is based in University Park, Illinois.

Buy $675M
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