Northgate Capital has bought a majority stake in Elara. According to the deal, the private equity firm will invest up to $38 million in Elara. Based in Mexico and Latin America, Elara is a provider of satellite telecommunication and technology services.
Northgate Capital, the global private equity fund manager, has acquired a majority stake in Elara Comunicaciones, S.A.P.I. de C.V. through a transaction in which Northgate will invest up to US$38 million in both primary and secondary transactions.
Elara is the leading teleport telecommunications company in Mexico and Latin America providing its clients mission critical satellite connectivity. The Company’s solutions allow its clients to send and receive voice, bulk data, and provides Wi-Fi and cellular connectivity through satellite access in regions where traditional terrestrial telecommunications is neither accessible nor feasible. The Company’s target segments include fixed line and mobile carriers, government and diverse industries such as the oil & gas industry.
Northgate’s investment in the company will be used to further develop Elara’s product portfolio and execute its expansion plan. Several initiatives are currently underway to grow the firms’ operations in Mexico and in Latin America.
“The creation of this partnership is exciting as Elara continues on its path of aggressive growth,” said Jorge Villarreal, founder and Chief Executive Officer of Elara. “We are excited to work closely with Northgate Capital to drive our market leading position in providing connectivity in our target sectors. With Northgate’s support, we will further expand our product offerings and geographic coverage with the highest service level in the industry.”
“Mexico and Latin America are in the need of increased connectivity solutions both on the public and private sectors. The increased need for connectivity services, coupled with innovative cost-effective satellite technologies, makes the current market conditions very attractive to continue expanding Elara’s business offering. We are enthusiastic about this partnership with Elara and look forward to developing a successful and socially responsible story in the following years” said Gabriel Mizrahi, Principal at Northgate Capital Mexico.
“We are eager to provide Elara with the resources and backing to accelerate its growth in the satellite communications industry,” said Alejandro Medina, an Investment Manager at Northgate Capital. “Elara´s high value-add position in the market, together with its leading presence in the government, carrier and energy segments, sets the Company for significant expansion. We look forward to continuing to work with Jorge and his team to create meaningful value for Elara’s customers. ”
About Elara Comunicaciones
Founded in 2004, Elara Comunicaciones is the leading provider of satellite telecommunication and technology services in Mexico and Latin America. In 2013 the WTA (World Teleport Association) ranked it as the second fastest growing teleport in the industry at a global level, and also as the 19th among the independent teleports with highest income. Jorge Villarreal was named as the 2014 Teleport Executive of the Year by the World Teleport Association. For more information, please visit www.elara.com.mx
About Northgate Capital
Founded in 2001, Northgate Capital is a leading global private equity fund manager, with offices in seven countries and more than US$5 billion in committed capital, Northgate has built a platform of over 35 investment professionals across Europe, North America, Latin America and Asia. For more information, please visit www.northgate.com