AUGUST 26, 2010 -- Private equity firm Court Square Capital Partners has reached a definitive agreement to acquire privately held Fibertech Networks, an Eastern and Central U.S. regional provider of fiber-optic bandwidth services.
The acquisition price was not disclosed. The 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.
Court Square will acquire Fibertech Networks from its original investors, Nautic Partners and 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’s 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.”
Purcell said thatall employees of Fibertech are expected to 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.
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