Buyout (LBO, MBO, MBI) • Communications

Frontenac Acquires Allegiance Telecom

On January 1, 1997, private equity firm Frontenac acquired communications company Allegiance Telecom

Acquisition Context
  • This is Frontenac’s 1st transaction in the Communications sector.
  • This is Frontenac’s 17th transaction in the United States.
  • This is Frontenac’s 2nd transaction in Texas.
Investment Fate
  • Allegiance Telecom went bankrupt in 2003.
  • Allegiance Telecom was sold to a strategic buyer in 2004.

Explore All 547 Buyout (LBO, MBO, MBI) Communications Deals - Search the Database Free


M&A Deal Summary

Date January 1, 1997
Target Allegiance Telecom
Sector Communications
Buyer(s) Frontenac
Deal Type Buyout (LBO, MBO, MBI)

Target Company

Allegiance Telecom

Dallas/Fort Worth Area, Texas, United States
Allegiance Telecom was launched as a competitive local exchange carrier (CLEC) to take advantage of the market opportunities created by the passage of the 1996 Telecommunications Act. It focused on serving small- to mid-sized businesses in major U.S. cities.
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Buyer Overview 1

Buyer

Frontenac

Chicago, Illinois, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1971
PE ASSETS 2.1B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Frontenac is a Midwest US-based private equity firm that seek profitable, lower middle-market company investments with $5 to $25 million of EBITDA. Frontenac typically partners with management when pursuing acquisitions, including companies managed by owner-operators. Sectors of interest include financial services, healthcare services, education/HR services, manufacturing, publishing/media, and technology services. Frontenac was formed in 1971 and is based in Chicago, Illinois.


Deal Context for Buyer #
Overall 19 of 81
Sector: Communications 1 of 1
Type: Buyout (LBO, MBO, MBI) 9 of 25
State: Texas 2 of 5
Country: United States 17 of 77
Year: 1997 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
1997-01-01 Premier Systems Integrators

Smyrna, Tennessee, United States

Premier Systems Integrators was an IT systems integrator and provider of extended network infrastructure solutions to middle-market customers.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
1998-01-01 ProMach

Covington, Kentucky, United States

ProMach is a provider of complete packaging machinery solutions, engineering and integration services, and related aftermarket products and services. ProMach brands operate across the entire packaging spectrum: filling and capping, flexibles, pharma, product handling, labeling and coding, and end of line. ProMach also provides Performance Services including integrated solutions, design/build, engineering services, and productivity software to optimize packaging line design and deliver maximum uptime. ProMach was founded in 1998 and is based in Covington, Kentucky.

Buy -