Global Leveraged Capital portfolio company TX Communications has acquired the assets of Trillion Partners. With operations in 21 states, TX Communications (doing business as Affiniti) operates broadband networks, and provides managed services to customers in the education, healthcare, government, and wholesale markets. GLC, a private merchant banking firm, had been a lender to Trillion since 2008, and had supported Trillion through its operational and financial restructuring.
Global Leveraged Capital (“GLC”) announced today that its portfolio company, TX Communications, LLC (doing business as Affiniti), acquired the assets of Trillion Partners, Inc. (“Trillion”). With operations in 21 states, Affiniti operates broadband networks, and provides managed services to customers in the education, healthcare, government, and wholesale markets.
GLC, a private merchant banking firm, had been a lender to Trillion since 2008, and had supported Trillion through its operational and financial restructuring. The acquisition of Trillion’s assets closed on October 18, 2013.
Subsequent to the close of this acquisition, Affiniti entered into a network management agreement with EAGLE-Net Alliance (“EAGLE-Net”) of Colorado. Under the Broadband Technology Opportunity Program (“BTOP”), EAGLE-Net was the recipient of federal grants to construct a broadband infrastructure network to serve schools throughout the state of Colorado. Affiniti responded to EAGLE-Net’s invitation to negotiate to manage its day-to-day operations and provide financial support with the goal of funding operating expenses and expanding the reach of EAGLE-Net’s network. Though one of many bidders, Affiniti was chosen as the network operator, and on October 22, 2013, Affiniti and EAGLE-Net entered into an agreement whereby Affiniti would become a sub-recipient of EAGLE-Net’s grant, take responsibility for certain expenses, continue the build-out of the EAGLE-Net network, and manage network operations, including adding new customers. Consistent with Affiniti’s history of providing broadband connections and services to schools, Affiniti will partner with EAGLE-Net to provide Colorado students with access to high-speed broadband technology.
In addition, Affiniti also entered into an agreement with the North Florida Broadband Authority (“NFBA”), whereby Affiniti will become a sub-recipient of NFBA’s BTOP grant, and will build-out, manage, and operate its broadband network. According to Mr. Lain, “North Florida is a vastly underserved market in terms of broadband access. Broadband communication tools and services are critical for schools, hospitals, and local government institutions to operate effectively, and Affiniti welcomes the opportunity to work to improve broadband access in the region.”
Simultaneous with the closing of the acquisition of the assets of Trillion, and Affiniti agreeing to take the role of the manager and operator of EAGLE-Net’s and NFBA’s networks, GLC, through one of its affiliates, provided additional capital to Affiniti with the goal of supporting Affiniti’s expanding operations and financing the transactions with EAGLE-Net and NFBA. Jeffrey Youle, Managing General Partner of GLC and Chairman of Affiniti, said, “We believe Affiniti has an important mission, to connect schools, hospitals, and government institutions in underserved markets. With GLC’s financial support and access to additional capital sources and strategic partners, Affiniti now has the leadership and the capital to succeed in fulfilling this mission.”
Headquartered in Austin, TX, TX Communications, LLC (d/b/a, Affiniti) is a leading provider of broadband communication and network services to public and private organizations across the United States. Through its middle mile networks, last mile connections, and customized network integration solutions, Affiniti provides broadband wide area networking, voice over IP telephony, Internet access, and managed services to schools, hospitals, state and local governments, and private enterprises.
About Global Leveraged Capital
Founded in 2005, Global Leveraged Capital (http://www.glcmerchantbanking.com) is a private investment and advisory firm focused on the middle market. With over $500 million of assets under management, the firm focuses on two activities: GLC Merchant Banking and GLC Advisors & Co. GLC Merchant Banking provides debt and equity capital for middle market leveraged buyouts, strategic acquisitions, recapitalizations, and growth financings. GLC Merchant Banking also invests in the debt of distressed companies where it can play an active role in the company’s restructuring. GLC Advisors & Co. is a leading independent advisory firm focused on providing services to debtors, creditors, prospective buyers, and other stakeholders in corporate restructurings. The professionals at GLC Advisors & Co. (http://www.glca.com) have advised on over 150 restructuring transactions involving more than $300 billion of securities. Securities transactions are carried out through GLCA Securities, LLC, a wholly owned subsidiary of GLC Advisors & Co., which is a registered broker dealer and member FINRA/SIPC.
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