TelePacific Communications, an IP, voice, data and Internet services company , announced today that it will acquire Tel West, an Austin-based voice, data and Internet service provider. Specific financials of the deal were not disclosed.
Tel West provides services to around 3,400 small and medium-sized businesses, enterprise customers and governments that span six major metropolitan areas including Dallas, Austin, San Antonio, Houston, Fort Worth, and Corpus Christi.
Los Angeles-based TelePacific, has the largest revenue market share for small and medium size business customers in California and Nevada after AT&T, Verizon and CenturyLink. Today, the company and its 1,300 employees manage more than 38,000 business accounts in excess of 1.2 million access lines of service.
This transaction follows TelePacific’s recent announcement to purchase the assets of Telekenex, which includes a nationwide PCI compliant MPLS/OC-192 backbone, cloud-based security services, managed network services and a hosted PBX platform. TelePacific plans to leverage these additional capabilities to Tel West through TelePacific’s new managed services channel.
“The acquisition of Tel West will provide TelePacific with a solid foundation for future growth in Texas,” said Dick Jalkut, president and CEO of TelePacific. “Tel West’s success with its customers, employees and infrastructure creates an ideal platform to leverage TelePacific’s expanded services and create the leading communications network service provider in Texas.”
TelePacific, whose largest shareholders are private equity investors and affiliates of Investcorp SA (INVCORP) and Clarity Partners L.P., has completed eight in-region acquisitions since 2002.
Lars Haegg, managing director at Investcorp and Clint Walker, general partner at Clarity Partners said in the following statement: “The acquisition of Tel West represents an important strategic milestone for TelePacific. Several years ago after significant analysis, management and the board of directors identified Texas as a very attractive expansion state in part due to its 20% population growth and 15% business growth over the past 10 years. TelePacific currently serves deep and dense population centers in California and Nevada and with the addition of Texas will cover approximately 20% of the small and medium businesses in the U.S. We are very excited to be in a position to leverage Tel West’s outstanding employees, network and dense metro fiber assets to build a substantial communications company in Texas.”
The combined company will continue headquarters in Los Angeles and keep CEO Dick Jalkut. Tel West will continue to operate under its own name and the leadership of Jeff Swickard, who will continue as president of Tel West.
Closing of the transaction is subject to regulatory approvals and conditions.
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