Pamlico Capital of Charlotte, N.C., acquired ATX Networks from Trivest Partners. Members of management re-invested in partnership with Pamlico Capital to complete the transaction. Financial terms were not disclosed. ATX Networksof Ajax, Ontario, provides radio frequency management equipment.
ATX Networks, headquartered in Ajax, Ontario, announced today that Pamlico Capital has acquired the company from Trivest Partners. Members of management have re-invested in partnership with Pamlico Capital to complete the acquisition. Terms of the acquisition were not disclosed.
ATX Networks is the leading provider of radio frequency management equipment used by nearly all North American and many international cable providers to manipulate radio frequency signals for the distribution of video, Internet applications, and voice services to subscribers. ATX Networks had been owned by Trivest Partners and the company’s management since 2008. Ken Wildgoose, CEO of ATX Networks, and the current management team will retain a significant ownership position in the company and continue to lead its growth in partnership with Pamlico Capital going forward.
ATX Networks is committed to becoming the most innovative and valuable supplier to providers of video, voice, and data services globally. The company’s broad suite of radio frequency management products enables operators to configure their network to offer advanced services, including high definition (HD) content, video on demand (VOD), digital voice (VoIP), high-speed data (HSD), and other advanced digital video solutions. In addition to its core radio frequency platforms, the company has recently launched two suites of innovative products, the Digital Video Insertion System (DVIS) and UCrypt product families, geared toward solving pressing issues in the subscriber premise and multiple dwelling unit (MDU) market segments.
According to Mr. Wildgoose, the partnership with Pamlico will allow ATX Networks to continue to build on its long history of success. “ATX Networks is poised to expand through a tireless focus on customer service, continued product innovation, entry into adjacent product categories, and the pursuit of complementary acquisitions. With its successful history investing in the cable industry, Pamlico immediately recognized the company’s potential and is committed to providing us the financial support and strategic resources necessary to help us execute our growth strategy,” he said.
Pamlico Partner Art Roselle said, “We are excited about the opportunity to partner with Ken Wildgoose, Jay Lee, and the team at ATX Networks. The company is a clear leader in a market that is benefitting from explosive growth in bandwidth demand, the proliferation of advanced cable service offerings such as VOD, HDTV, HSD, and VoIP, and the increasing complexity of cable network architectures. We will look to leverage the company’s proven track record of new product innovation and acquisition success to expand its position in existing and new markets.”
Trivest Partner Chip Vandenberg said, “During our partnership with ATX Networks, the company’s management team did a stellar job of driving organic growth and the October 2009 acquisition of ATX Network’s largest radio frequency management product competitor further enhanced the company’s position as a global leader. The entire ATX Network’s management team, led by Ken Wildgoose, Jay Lee, and Christina Kotsios, deserves a great deal of credit for the company’s success.”
ATX Networks and Trivest Partners were advised by Oppenheimer & Co. (financial advisor) and Blake, Cassels & Graydon LLP (legal advisor). Pamlico was advised by Alston & Bird LLP (legal advisor).
About ATX Networks
ATX Networks is a leading designer and manufacturer of equipment for cable operators. ATX designs and manufactures a diversified suite of products used to fulfill the everyday requirements of the world’s largest cable companies for their network operations, maintenance, and expansion needs. Headquartered in Ajax, Ontario, the company has assembled a blue-chip customer base that includes nearly every major cable operator in the United States and Canada and a growing list of international system operators. ATX focuses its product offering in the cable headend, but its product portfolio includes equipment found across the entire cable network architecture. For additional information, please visit www.atxnetworks.com.
About Pamlico Capital
Pamlico Capital, formerly known as Wachovia Capital Partners, was founded in 1988 and has invested in excess of $3.5 billion in over 200 middle market companies since its inception. Pamlico Capital seeks growth equity and buyout investments of up to $100 million alongside proven management teams in its target industries, which include business & technology services, communications, and healthcare. The firm, based in Charlotte, NC, currently manages over $2 billion in assets. Please refer to www.pamlicocapital.com for additional information.
About Trivest Partners
Trivest Partners is a private investment firm that focuses on partnering with founder/family owned businesses in the United States and Canada. Since its founding in 1981, Trivest has completed more than 150 transactions, totaling more than $4.5 billion in value. For additional information, please visit www.trivest.com.
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