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HIG Capital affiliate buys ATX Networks from Pamlico Capital

An affiliate of U.S. private equity firm HIG Capital has bought ATX Networks Corp, a Toronto-based designer, manufacturer and marketer of products for the global cable television industry and private video networks. The acquisition’s value was not disclosed. The transaction provided an exit to U.S. private equity firm Pamlico Capital, which initially invested in the company in 2010. HIG said ATX and its product portfolio “provide an ideal platform to build on through both organic initiatives and add-on acquisitions.” Founded in 1985, the company has a light manufacturing facility in Stuart, Florida and a research centre in Petach-Tikva, Israel.

PRESS RELEASE

H.I.G. Capital Completes Acquisition of ATX Networks Corp.

MIAMI–(BUSINESS WIRE)–H.I.G. Capital (“H.I.G.”), a leading global private equity investment firm with more than $17 billion of equity capital under management, is pleased to announce that its affiliate has acquired ATX Networks Corporation (“ATX” or the “Company”).

“We are excited about the future of the Company and feel our partnership with H.I.G. and their plans to invest in the business will allow us to attain our next level of growth.”

ATX is a market leading designer and developer of patented, radio frequency (“RF”) and digital video processing equipment used by cable operators and a growing number of private video networks, A/V integrators, and telecommunication companies. Cable operators rely on the Company’s RF equipment to enable increased bandwidth to their subscribers, while ATX’s growing suite of non-RF products provides solutions for network operators to efficiently deliver video and data services to end users, including but not limited to transcoding and encoding, bulk video transition gateways, and content streaming products.

Headquartered outside of Toronto, Ontario, ATX also operates a light manufacturing facility in Stuart, FL and maintains a state-of-the-art research and development center in Petach-Tikva, Israel. The Company is proficient in digital video software and hardware development, specifically around encoding, transcoding, and multiscreen streaming.

“ATX is an industry leader with a long track record of innovation and unrivaled customer service,” said Camilo E. Horvilleur, Principal at H.I.G. Capital. “The Company is well-positioned for continued growth given strong demand for broadband services. ATX’s world class management team and industry leading product portfolio provide an ideal platform to build on through both organic initiatives and add-on acquisitions.”

“We believe highly-favorable industry trends along with our continued focus on product innovation, positions ATX for success in both the short and long term,” said Ken Wildgoose, ATX’s President and CEO. “We are excited about the future of the Company and feel our partnership with H.I.G. and their plans to invest in the business will allow us to attain our next level of growth.”

About ATX Networks

ATX is a market leading designer and developer of patented, radio frequency (“RF”) and digital video processing equipment used by cable operators and a growing number of private video networks, A/V integrators, and telecommunication companies. Headquartered outside of Toronto, Ontario, the Company also operates a light manufacturing facility in Stuart, FL and maintains a state-of-the-art research and development center in Petach-Tikva, Israel.

About H.I.G. Capital

H.I.G. is a leading global private equity and alternative assets investment firm with more than $17 billion of equity capital under management.* Based in Miami, and with offices in New York, Boston, Chicago, Dallas, San Francisco, and Atlanta in the U.S., as well as international affiliate offices in London, Hamburg, Madrid, Milan, Paris and Rio de Janeiro, H.I.G. specializes in providing both debt and equity capital to small and mid-sized companies, utilizing a flexible and operationally focused/ value-added approach:

1. H.I.G.’s equity funds invest in management buyouts, recapitalizations and corporate carve-outs of both profitable as well as underperforming manufacturing and service businesses.

2. H.I.G.’s debt funds invest in senior, unitranche and junior debt financing to companies across the size spectrum, both on a primary (direct origination) basis, as well as in the secondary markets. H.I.G. is also a leading CLO manager, through its WhiteHorse family of vehicles, and manages a publicly traded BDC, WhiteHorse Finance.

3. Other H.I.G. funds invest in various real assets, including real estate and shipping.

Since its founding in 1993, H.I.G. has invested in and managed more than 200 companies worldwide. The firm’s current portfolio includes more than 80 companies with combined sales in excess of $30 billion. For more information, please refer to the H.I.G. website at www.higcapital.com.

* Based on total capital commitments to funds managed by H.I.G. Capital and its affiliates.

Contacts
H.I.G. Capital
Rick Rosen, 305-379-2322
Executive Managing Director
rrosen@higcapital.com
or
Camilo Horvilleur, 305-379-2322
Principal
chorvilleur@higcapital.com
or
Ryan Kaplan, 305-379-2322
Principal
rkaplan@higcapital.com

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