Add-on Acquisition • Communications

Comsat International Acquires Convergence Communications

On June 29, 2004, Comsat International acquired communications company Convergence Communications from FondElec Capital Advisors

Acquisition Context
  • This is Comsat International’s 1st transaction in the Communications sector.
  • This is Comsat International’s 1st transaction in the United States.
  • This is Comsat International’s 1st transaction in California.

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M&A Deal Summary

Date June 29, 2004
Target Convergence Communications
Sector Communications
Buyer(s) Comsat International
Sellers(s) FondElec Capital Advisors
Deal Type Add-on Acquisition

Target Company

Convergence Communications

San Diego, California, United States
Convergence Communications, Inc. is a provider of managed data network services, high speed Internet access and broadband services in Mexico and Central America.
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Buyer Overview 1

Buyer

Comsat International

McLean, Virginia, United States

Category Company
Founded 1963
Sector Communications
Employees700
DESCRIPTION

The company has its own extensive regional network and also provides customers with datacentre, hosting and security services. The primary goal of COMSAT was to serve as a public, federally funded corporation intended to develop a commercial and international satellite communication system press


Deal Context for Buyer #
Overall 1 of 1
Sector: Communications 1 of 1
Type: Add-on Acquisition 1 of 1
State: California 1 of 1
Country: United States 1 of 1
Year: 2004 1 of 1

Seller Profile 1

SELLER

FondElec Capital Advisors

Stamford, Connecticut, United States

Category Private Equity Firm
Size Small
Type Sector Agnostic
DESCRIPTION

FondElec Capital Advisors is an investment and advisory firm that provides investment banking services and manages private equity funds through its fund management affiliates. FondElec targets investments in energy, communications and technology companies. FondElec's funds include the Latin America Energy and Electricity Fund and the FondElec Essential Services Growth Fund. FondElec is based in Stamford, Connecticut.


Deal Context for Seller #
Overall 1 of 1
Sector: Communications 1 of 1
Type: Add-on Acquisition 1 of 1
State: California 1 of 1
Country: United States 1 of 1
Year: 2004 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2002-11-05 Transredes S.A.

Bolivia

Transporte de Hidrocarburos (Transredes) is Bolivia's hydrocarbon transport company. Transredes was formed in May 1997 under the Capitalization process by which state-owned assets were transferred to the private sector. The principle shareholders are Enron Shell, and various Bolivian Pension funds. Transredes is building towards expanding networks within Bolivia with international connections to Argentina, Brazil and Chile.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2004-08-27 Cataguazes

Brazil

Cataguazes is an energy company whose concession territories cover 200 municipalities in the Zona da Mata region of the State of Minas Gerais in Brazil. The company has more than 680,000 customers.

Buy -