Divestiture • Communications

Arcapita Acquires Cypress Communications

On June 30, 2005, asset manager Arcapita acquired communications company Cypress Communications from U.S. RealTel for 42M USD

Acquisition Context
  • This is Arcapita’s 2nd transaction in the Communications sector.
  • This is Arcapita’s 9th largest (disclosed) transaction.
  • This is Arcapita’s 17th transaction in the United States.
  • This is Arcapita’s 5th transaction in Georgia.
Investment Fate
  • Cypress Communications was sold to a strategic buyer in 2011.

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M&A Deal Summary

Date June 30, 2005
Target Cypress Communications
Sector Communications
Buyer(s) Arcapita
Sellers(s) U.S. RealTel
Deal Type Divestiture
Deal Value 42M USD

Target Company

Cypress Communications

Atlanta, Georgia, United States
Cypress Communications is an on-demand communication solution provider in 29 major metropolitan U.S. markets, connecting more than 120,000 employees for over 8,500 small and mid-sized businesses in commercial office buildings.
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Buyer Overview 1

Buyer

Arcapita

Manama, Bahrain

Investor Investor Investor Investor Investor


Category Asset Manager
Founded 1997
Size Mega
Type Sector Agnostic
DESCRIPTION

Arcapita is a private investment firm with separate investment disciplines spanning venture capital, corporate investment, real estate, and asset-based investments. Arcapita's Corporate Investment practice looks to acquire controlling interests in established companies valued between $50 million and $500 million. Sectors of interest include consumer products/services, healthcare, energy, technology, and manufacturing. Arcapita's infrastructure team looks to invest $50 to $300 million in energy, water, and transportation assets. The Firm will consider opportunities around the globe; including the United States, Latin America, Russia, China, Europe, Middle-East, and India. Arcapita was formed 1997 and has offices in Manama, Bahrain; Atlanta, Georgia; London; and Singapore.


Deal Context for Buyer #
Overall 19 of 47
Sector: Communications 2 of 2
Type: Divestiture 2 of 3
State: Georgia 5 of 10
Country: United States 17 of 32
Year: 2005 3 of 5
Size (of disclosed) 9 of 9
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-05-15 DVT

Norcross, Georgia, United States

DVT Corp., is a provider of vision sensors, which it sells primarily to the factory-floor segment of the machine vision business.

Sell $115M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2005-09-20 Falcon Gas Storage Co.

Atlanta, Georgia, United States

Falcon Gas Storage Company, Inc. is the largest independently owned developer and operator of high-deliverability, multi-cycle (HDMC) natural gas storage capacity in the United States.

Buy -

Seller Profile 1

SELLER

U.S. RealTel

Atlanta, Georgia, United States

Category Company
Sector Communications
DESCRIPTION

U.S. RealTel, Inc. (OTCBB:USRT), is a national broadband services company.


Deal Context for Seller #
Overall 1 of 1
Sector: Communications 1 of 1
Type: Divestiture 1 of 1
State: Georgia 1 of 1
Country: United States 1 of 1
Year: 2005 1 of 1
Size (of disclosed) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2002-01-11 Cypress Communications

Atlanta, Georgia, United States

Cypress Communications is an on-demand communication solution provider in 29 major metropolitan U.S. markets, connecting more than 120,000 employees for over 8,500 small and mid-sized businesses in commercial office buildings.

Buy -