Dan Clifton - Fibertech Networks (585) 697-5100
Court Square Capital Partners To Acquire Fibertech Networks
New alliance allows Fibertech to continue as a private company; current management and employees to remain intact
August 26, 2010 - Rochester, NY
Fibertech Networks, a leading regional provider of fiber optic bandwidth services, today announced that it has entered into a definitive agreement under which Court Square Capital Partners (“Court Square”) would acquire Fibertech.
Under the terms of the agreement, Court Square will acquire the company from its original investors, Nautic Partners and the team at Ridgemont Equity Partners. The transaction is expected to close in the second half of 2010, following the satisfaction of customary closing conditions including all required regulatory approvals. The agreement has already been approved by the Fibertech Board of Directors and by Court Square Capital Partners.
“This opportunity allows Fibertech to continue to operate as a private company, serving and supporting our customers in the way they’ve come to expect from us over the past decade,” said John K. Purcell, President and CEO of Fibertech. “In addition, we have the flexibility to grow and expand our business with the support of a partner who has a long history of investment in the telecom and technology space, and of investing in profitable companies with strong growth potential. This new alliance represents the next stage of growth for Fibertech.”
This transaction will be financed through a combination of equity contributed by investment funds managed by Court Square, as well as investment by the senior management of Fibertech and new debt facilities.
Purcell said that, under the agreement, all employees of Fibertech will be retained in their current roles. Purcell, as well as Fibertech Networks Founder and COO Frank Chiaino, will remain with the company in their current positions. All other senior management personnel are expected to stay on with the company as well.
“Fibertech has developed into an exceptional company. They have built an outstanding combination of strong sales; excellent financial results and an unyielding commitment to employees and customers,” said Bernie Buonanno, a Managing Director of Nautic Partners LLC, the lead equity investor in Fibertech. “We were fortunate to partner with such an outstanding management team.”
About Court Square Capital Partners
About Nautic Partners
AboutRidgemont Equity Partners
About Fibertech Networks
Oppenheimer and Co. Inc and Duff and Phelps were the financial advisors to Fibertech Networks, Bingham McCutchen LLP and Edwards Angell Palmer and Dodge LLP were the law firms advising Fibertech, and Dechert LLP law firm advised Court Square Partners.