Broadband Communications Services Provider
June 2016 - The Independence Group (IG) has completed the sale of a broadband communications services provider to a private equity firm, for a total transaction value of approximately $62 million.
The technology company, located in the Sacramento region, is registered to conduct business in 32 states. It has earned a reputation as a premier provider of qualified personnel and managed services to the IT, Telecom and CATV industries. The company's wide range of services includes staffing, design and broadband installation of wireless and wireline voice, data and video broadband networks. It has also developed proprietary in-house job management analytics software to grow a database of more than 30,000 skilled IT and communications consultants across the U.S.
The private equity firm has offices in New York and San Francisco and is focused on investing in companies in the media, technology, and communications sectors. The firm works with its portfolio CEOs and management teams to identify opportunities as both an advisor and partner. With the private equity firm's backing, the technology company will most certainly see rapid growth as it has the personnel and technological infrastructure in place to facilitate anticipated expansion.
"The closing of this deal is momentous to our client, as well as to IG," said Larry Willis, President. "The process of identifying the right buyer was lengthy and painstaking. Over the course of 12 to 14 months we interviewed more than 65 prospects. During that time, the Company continued a steady growth pattern so the revenue numbers were always a moving target. There were also other issues to overcome such as customer concentration. Ultimately the buyer persevered and our client now has a partner that will help guide the company to its expansion goals."
The transaction marks IG's 14th sale to a private equity group. The sale of a biologicals manufacturer was completed in December 2015 and other successful deals with private equity groups include a medical billing company, an environmental remediation services provider and a fishing tackle manufacturer.
IG is in the process of expanding its buy-side services division to offer enhanced acquisition search assistance to select private equity firms. It continues to build its list of both sell-side and buy-side opportunities.