Private equity firm The Gores Group, through an affiliate, has signed an agreement to acquire Alpheus Communications, one of the largest fibre network and data centre operators in Texas.
he Gores Group intends to combine Alpheus with First Communications, an existing Gores portfolio company. Genesis Park, LP and El Paso Corporation are the sellers. Terms of the transaction were not disclosed.
Alpheus Communications has a strong presence in Dallas/Fort Worth, Houston, Austin and San Antonio — four of the fastest growing markets in the United States. The acquisition includes more than 2,800 route miles of long-haul fibre and nearly 3,250 metro route miles, bringing the total of the First Communications network to over 10,500 fibre route miles.
“The acquisition of Alpheus Communications provides Gores with a tremendous opportunity to expand upon our current telecommunications holdings, particularly our fibre and high bandwidth transport services businesses,” says Ashley Abdo, Managing Director of The Gores Group. “In addition to the network assets, the deal brings additional sales and operational experience that will help us continue to expand our holdings.”
“This transaction will benefit all of our stakeholders. Alpheus has had great success in bringing better broadband services to Texas, and this is just the next chapter. No telecommunications company in America is in a better position to keep winning for its customers and employees,” says Paul Hobby, Chairman and CEO, Alpheus Communications.
Alpheus Communications’ deep metro network, as well as its reputation and long-term customer tenures, were key considerations for the acquisition. In addition, First Communications can easily layer its core services, including Premium Ethernet, Ethernet DIA and Essential T1, onto the existing Alpheus platform to meet the specific needs of any size business.
Waller Capital Partners acted as the exclusive Financial Advisor to both Gores and Alpheus.
