M&A Deal Summary

TPx Communications Acquires Arrival Communications

On December 7, 2006, TPx Communications acquired communications company Arrival Communications from Housatonic Partners, Alta Equity Partners and BancBoston Capital

Acquisition Highlights
  • This is TPx Communications’ 2nd transaction in the Communications sector.
  • This is TPx Communications’ 2nd transaction in the United States.
  • This is TPx Communications’ 1st transaction in California.

M&A Deal Summary

Date 2006-12-07
Target Arrival Communications
Sector Communications
Buyer(s) TPx Communications
Sellers(s) Housatonic Partners
Alta Equity Partners
BancBoston Capital
Deal Type Add-on Acquisition

Target

Arrival Communications

Bakersfield, California, United States
Arrival is a profitable facilities-based competitive local exchange carrier, offering a full array of integrated communications services to business customers. Arrival targets business customers in underserved markets throughout Central California, a fast-growing region characterized by a large concentration of small and medium-sized enterprises.

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Buyer(S) 1

Buyer

TPx Communications

Austin, Texas, United States

Category Company
Founded 1998
Sector Communications
DESCRIPTION
TelePacific's office in San Jose, California.
TelePacific's office in San Jose, California.

TPx Communications is a provider of UCaaS, Managed IT services and Managed Connectivity services, with approximately 30,000 customers and 53,000 customer locations across the U.S. TPx local exchange carrier that delivers local, long-distance, broadband Internet, web hosting, co-location, cloud-based and data transport services to business customers in California, Nevada and Texas. TPx Communications was established in 1998 and is based in Austin, Texas.


DEAL STATS #
Overall 2 of 6
Sector (Communications) 2 of 4
Type (Add-on Acquisition) 2 of 5
State (California) 1 of 1
Country (United States) 2 of 6
Year (2006) 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2006-05-05 Mpower Communications

Pittsord, New York, United States

Mpower Communications is a facilities-based broadband communications provider offering a full range of data, telephony, Internet access and Web hosting services for retail business and wholesale customers.

Buy $204M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2010-12-23 NextWeb

Seattle, Washington, United States

NextWeb, Inc. (dba Covad Wireless) delivers business-class broadband service to small and medium-sized businesses at speeds up to 100 megabits per second (Mbps), complementing Covad’s existing portfolio of data solutions.

Buy -

Seller(S) 3

SELLER

Housatonic Partners

Boston, Massachusetts, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1994
PE ASSETS 1.5B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Housatonic Partners is a private equity firm focused on investing in growing, profitable companies with a preference for businesses generating recurring revenues. Target sectors include services, media, and communications. Housatonic looks to commit $10 to $30 million per transaction to support buyouts and recapitalizations. Prospective companies generally have high gross margins and moderate capital intensity. Housatonic was formed in 1994 and has offices in Boston, Massachusetts and San Francisco, California.


DEAL STATS #
Overall 14 of 44
Sector (Communications) 3 of 5
Type (Add-on Acquisition) 6 of 20
State (California) 6 of 10
Country (United States) 14 of 42
Year (2006) 7 of 7
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2006-10-01 LeMaitre Vascular

Burlington, Massachusetts, United States

LeMaitre Vascular is a provider of devices for the treatment of peripheral vascular disease. LeMaitre Vascular was founded in 1983 and is based in Burlington, Massachusetts.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2007-01-30 ServiceSource

Denver, Colorado, United States

ServiceSource is a global outsourced go-to-market services provider that accelerates B2B digital sales and customer success transformation. The company's expert sales professionals, data-powered insights, and proven methodologies scale and reimagine customer journey experiences (CJX) into profitable business outcomes. It drives billions of dollars in client value annually, conducting commerce in 45 languages and 175 countries. ServiceSource International was founded in 1999 and is based in Denver, Colorado.

Buy -
SELLER

Alta Equity Partners

Concord, Massachusetts, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1989
Size Small
Type Sector Agnostic
DESCRIPTION

Alta Equity Partners is a private equity firm focused on acquiring lower middle-market, US-based companies. The Firm is a generalist investor but targets companies exhibiting recurring revenue business models, low capital intensity, proven management, and opportunities for growth. Prospective transaction situations of interest include recapitalizations, management buyouts, divestitures, and special situations. Alta Equity Partners was formerly known as Alta Communications. Alta Communications was formed in 1989 and the Firm changed its name to Alta Equity Partners in 2010. Alta Equity Partners is based in Concord, Massachusetts.


DEAL STATS #
Overall 29 of 45
Sector (Communications) 18 of 20
Type (Add-on Acquisition) 26 of 36
State (California) 5 of 7
Country (United States) 27 of 43
Year (2006) 5 of 5
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2006-11-28 Pop Radio

Boston, Massachusetts, United States

Pop Radio LP is an audio advertising provider in the United States and delivers commercial audio messages to shoppers in over 10,000 groceries, drug, convenience, and mass merchandiser stores. POP Radio provides retail specific messaging along with third-party ad sales to a diverse array of leading retailers. Pop Radio is based in Boston, Massachusetts.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2007-04-03 PrairieWave Communications

Sioux Falls, South Dakota, United States

PrairieWave Communications, Inc., a broadband overbuilder, provides telecommunications services in rural South Dakota.

Sell $225M
SELLER

BancBoston Capital

Boston, Massachusetts, United States

Category Private Equity Firm
Founded 1959
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

BancBoston Capital was the private equity investment arm of FleetBoston Financial. The subsidiary invested equity and mezzanine financing to support a wide range of buyouts and other growth-related investments. BancBoston was formed in 1959 and is based in Boston and is no longer actively investing.


DEAL STATS #
Overall 2 of 2
Sector (Communications) 1 of 1
Type (Add-on Acquisition) 1 of 1
State (California) 1 of 1
Country (United States) 2 of 2
Year (2006) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2003-08-21 The Sheridan Group

Hunt Valley, Maryland, United States

The Sheridan Group is a specialty printer offering a full range of printing and value-added support services.

Sell $142M