Secondary Buyout • Communications

The Gores Group Acquires Alpheus Communications

On September 21, 2011, private equity firm The Gores Group acquired communications company Alpheus Communications from Genesis Park and El Paso

Acquisition Context
  • This is The Gores Group’s 8th transaction in the Communications sector.
  • This is The Gores Group’s 42nd transaction in the United States.
  • This is The Gores Group’s 5th transaction in Texas.
Investment Fate
  • Alpheus Communications was sold to a strategic buyer in 2017.

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M&A Deal Summary

Date September 21, 2011
Target Alpheus Communications
Sector Communications
Buyer(s) The Gores Group
Sellers(s) Genesis Park
El Paso
Deal Type Secondary Buyout

Target Company

Alpheus Communications

Houston, Texas, United States
Alpheus Communications LLC 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. Alpheus Communications was founded in 2000 and is based in Houston, Texas.
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Buyer Overview 1

Buyer

The Gores Group

Beverly Hills, California, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1987
PE ASSETS 4.0B USD
Size Large
Type Sector Agnostic
DESCRIPTION
The Gores Group's headquarters in Beverly Hills, California.
The Gores Group's headquarters in Beverly Hills, California.

The Gores Group is a private equity firm focused on acquiring controlling interests in mature and growing businesses. Gores considers investments across Europe and North America and typically seeks non-core assets of public corporations. While Gores is a generalist investor, the firm has a particular interest in technology, telecommunications, business services, and industrial companies. The Gores Group was formed in 1987 and has offices in Beverly Hills, California, and Boulder, Colorado.


Deal Context for Buyer #
Overall 49 of 74
Sector: Communications 8 of 10
Type: Secondary Buyout 4 of 5
State: Texas 5 of 6
Country: United States 42 of 61
Year: 2011 6 of 8
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2011-09-02 Mexx International BV

Amsterdam, Netherlands

Mexx is a retailer and wholesaler of metropolitan casual apparel with a significant presence in several countries in continental Europe and in Canada. Mexx was founded in 1980 and is headquartered in Amsterdam, the Netherlands.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2011-10-01 Westwood One

New York, New York, United States

Westwood One, Inc. is an audio media company in the U.S., delivering compelling, engaging, and fully-integrated audio content to over 8,500+ radio stations and digital media companies.

Sell -

Seller Profiles 2

SELLER

Genesis Park

Houston, Texas, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1999
Size Small
Type Sector Agnostic
DESCRIPTION

Genesis Park is a private equity firm focused on lower middle-market opportunities. Transaction situations of interest include growth capital financings, carveouts, buyouts, special situations, and helping founder/family companies. The Firm has a preference for majority control, but will consider select minority investments. Prospective businesses are generally profitable ($3 million) with $10 million of revenue. Genesis Park was formed in 1999 and is headquartered in Houston, Texas.


Deal Context for Seller #
Overall 9 of 15
Sector: Communications 3 of 3
Type: Secondary Buyout 3 of 3
State: Texas 8 of 13
Country: United States 9 of 15
Year: 2011 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2011-08-30 Avalon Advisors

Houston, Texas, United States

Avalon Advisors is a money management firm that manages equity, fixed income and balanced portfolios for wealthy families, endowments, foundations and trusts. Avalon provides a high level of customer service and customized solutions for clients in a cost effective and tax efficient manner. Avalon Advisors was founded in 2001 and is based in Houston, Texas.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2012-01-01 Starr Hill Presents

Charlottesville, Virginia, United States

Starr Hill Presents is an entertainment company with a portfolio of festival interests. SHP has management and a differentiated pipeline of opportunities including investments in Bonnaro, Austin City Limits, Outside Lands, SXSW and Summerfest Houston.

Buy -
SELLER

El Paso

Houston, Texas, United States

Category Company
Founded 1928
Sector Oil/Gas Exploration
DESCRIPTION

El Paso Corporation is a processes, stores, and transmits natural gas and natural gas liquids. The Company was formed in 1928.


Deal Context for Seller #
Overall 2 of 2
Sector: Communications 1 of 1
Type: Secondary Buyout 1 of 1
State: Texas 1 of 1
Country: United States 2 of 2
Year: 2011 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2007-01-01 Laredo Energy III

Houston, Texas, United States

Laredo Energy III LP is a independent oil & gas acquisition and development company with operations in the Lobo Trend in South Texas.

Buy $225M