ALBANY, N.Y. and BOSTON, Oct. 3, 2011 /PRNewswire/ -- Albany, NY-based Tech Valley Communications, a portfolio company of Boston-based private equity firm Riverside Partners, announced today that it has closed on the acquisition of Lebanon, NH-based segTEL.
"This is a truly transformative transaction," said Kevin O'Connor, Chief Executive Officer and co-founder of Tech Valley Communications. "It furthers our objective of building the leading fiber footprint in the Northeastern United States. Following the acquisition, Tech Valley emerges with a technologically advanced network with over 150,000 fiber miles and over 700 fiber lit buildings. The transaction positions the company to leverage the combination of Tech Valley's premiere enterprise fiber network and segTEL's ultra-high capacity, low latency carrier-grade fiber optic networks to meet the ever increasing bandwidth demands of leading carrier, wholesale and enterprise customers," O'Connor added.
Tech Valley Communications, founded in 1999, operates its own extensive FirstLight® fiber optic network throughout New York's "Tech Valley," providing advanced last mile fiber optic service to carrier, wholesale, corporate and government customers, including most major regional state facilities, health care and educational institutions.
segTEL was founded in 1998 and provides fiber optic telecommunication services to carrier, wholesale, and large enterprise customers throughout New Hampshire, Vermont, Massachusetts and Maine. segTEL has unique and extensive expertise in providing customized fiber optic loop, backhaul and transport services to Top-25 wireline and wireless carriers. All segTEL staff will continue their current operational activities with the combined company.
"Our combined companies will be ideally positioned to provide an unparalleled breadth and depth of high capacity telecommunications services to enterprise, carrier and wholesale customers throughout our expanded northeastern U.S. fiber footprint," said segTEL President, Jeremy Katz, who will also assume the role of Executive Vice President of the combined business. "segTEL has experienced tremendous success over the past decade and the financial backing of Riverside Partners provides the resources to rapidly accelerate that growth throughout New England," continued Mr. Katz.
"The Riverside Partners team demonstrated profound understanding of the telecom market, an entrepreneurial spirit and the drive and resources needed to succeed in a rapidly growing and evolving technology environment," added Mr. Katz. "We are delighted to be partnering with Riverside Partners."
"We are very excited about the growth potential created by the combination of Tech Valley and segTEL," said Steven F. Kaplan, a General Partner at Riverside Partners. "Jeremy Katz and segTEL's founder Steve Goldsmith are true entrepreneurs and technology visionaries. They understand industry trends, the needs of their customers, and have a reputation for technological innovation and meticulous attention to quality. They have built a strong team and the largest competitive fiber network in Northern New England. We are thrilled to be working with them going forward. The partnership between the two businesses will expand geographic reach and deepen relationships with wholesale, carrier and large enterprise customers and is expected to propel their market positions as the businesses are able to offer customers more extensive services across a broader coverage area. Both companies enjoy reputations in their markets that are simply outstanding."
"This transaction is an example of the value-add we receive from our partnership with Riverside Partners," said Kevin O'Connor. "Since their initial investment a year ago, Riverside Partners has supported us with the capital, resources and strategic insight necessary to support our growth plans. Our network expansion started the day after the Riverside investment and our new fiber routes are already serving premier wholesale, enterprise, government and healthcare customers," O'Connor continued.
Q Advisors LLC, a Denver and San Francisco based investment banking boutique, acted as exclusive financial advisor to segTEL in connection with the transaction.
About Tech Valley Communications
Tech Valley Communications, headquartered in Albany NY, is the region's preeminent provider of telecommunication services over its advanced FirstLight® fiber optic network. Focusing on business enterprise and high demand customers, Tech Valley Communications connects hundreds of commercial and government buildings, serving large enterprise and institutions throughout the Tech Valley Region of Upstate New York. For more information, please visit http://www.techvalleycom.com
About Riverside Partners
Founded in 1989, Riverside Partners is a middle market private equity firm currently investing Riverside Partners Fund IV, L.P. The fund focuses on growth oriented companies primarily in the healthcare and technology industries. Riverside Partners is particularly experienced at partnering with founders, owners and management teams and it brings substantial domain expertise and operating experience to its portfolio companies. The partners at Riverside Partners have managed more than $500 million in investments in over 50 companies. The firm is currently focused on companies with revenues between $20 and $200 million and with $5-$25 million of EBITDA. For more information, please visit http://www.riversidepartners.com
Founded in 1998, segTEL provides fiber optic telecommunication services to carrier, wholesale, and large enterprise customers throughout New Hampshire, Vermont, Massachusetts and Maine. segTEL has unique and extensive expertise in providing customized fiber optic loop, backhaul and transport services to Top-25 wireline and wireless carriers.
SOURCE Riverside Partners