TPG Growth, Torch Hill Back Artel

Artel Inc., a provider of in information technology and managed communications network services, said Thursday that it had inked an equity investment from Torch Hill Investment Partners and TPG Growth – the middle market and growth capital platform of TPG Capital. Terms of the deal were not disclosed. Artel provides secure, high-reliability satellite and terrestrial communications solutions to government and commercial customers.

PRESS RELEASE
ARTEL, Inc., a global leader in information technology and managed communications network services, today announced that TPG Growth, the middle market and growth equity investment platform of TPG Capital, the global private investment firm, and Torch Hill Investment Partners (“Torch Hill”), a global investment firm that provides growth capital to companies in the defense and security sectors, have acquired a significant stake in the Company. ARTEL is a provider of secure, high-reliability satellite and terrestrial communications solutions to government and commercial customers. Terms of the transaction were not disclosed.

Abbas Yazdani, founder and CEO of ARTEL, said, “We are excited to partner with TPG Growth and Torch Hill. The two firms have the resources and expertise to help us continue to enhance our global network infrastructure and expand our managed services capabilities. I believe their involvement will enable us to provide a broader and more diversified set of services to meet the evolving needs of our clients.” Subsequent to the transaction, Mr. Yazdani will remain a significant ARTEL shareholder and will continue to serve as the Company’s CEO.

TPG has extensive experience as an investor in the satellite services, communications services and communications infrastructure industries, and has the ability to deploy a broad range of operations capabilities and management resources to support the management teams of growth companies. Torch Hill is a leading provider of growth capital to domestic and international companies that play vital roles in defense, intelligence, and civil and corporate security.

“ARTEL has built a well-regarded business, delivering secure communications networks to federal agencies and defense customers with complex needs and stringent requirements, and we are excited to help the Company continue to grow with these customers,” said David ibnAle, TPG Growth Managing Director. “With additional support, ARTEL has the potential to grow both organically and through acquisitions. We are looking forward to our partnership with Abbas Yazdani and the outstanding team that he has built at ARTEL.”

George Lund, Torch Hill’s Chairman, added, “We are impressed with ARTEL’s nascent cyber security and information assurance capabilities – capabilities which are necessary for the protection of our nation’s critical infrastructure. We are excited about helping the Company achieve long-term growth as the demand for its creative solutions increases with both government and commercial clients around the world.”

BB&T Capital Markets | Windsor Group, the Aerospace, Defense & Government Services Investment Banking group within BB&T Capital Markets served as the exclusive financial advisor to ARTEL in this transaction. RBC Capital Markets served as sole lead arranger and sole bookrunner on the senior secured credit facilities that were arranged to support the transaction. McCarthy, Sweeney & Harkaway; Pillsbury Winthrop Shaw Pittman; and Greenberg Traurig provided legal counsel to Artel and its shareholders. Skadden, Arps, Slate, Meagher & Flom provided legal counsel to TPG Growth.

About ARTEL, Inc.
Founded in 1986, ARTEL is a global leader in Telecommunications and Information Technology services, providing a full spectrum of Managed Network Services, Solutions Integration, and Information Assurance Services to meet the critical business and technology objectives of its clients. With a stellar performance record in every continent in both private and public sector markets, ARTEL provides solutions that cover the full life-cycle process, beginning with strategic business analysis and planning, to engineered solutions and ending in full implementation of global secure networks.

About TPG Growth
TPG Growth is the middle market and growth equity investment platform of TPG, the global private investment firm. With $2.5 billion under management, TPG Growth targets investments in a broad range of industries and geographies, utilizing leveraged buyout, growth equity, and private investment in public equity (PIPE) structures. The firm is backed by the resources of TPG with $48 billion of assets under management. TPG Growth has offices in the United States, China and India.

About Torch Hill Investment Partners
Established in 2005, Torch Hill Investment Partners was founded on the union of financial expertise and unrivaled security sector knowledge. This unique arrangement offers compelling advantages in delivering investors attractive returns in today’s turbulent and complex geopolitical environment. Torch Hill provides growth capital to domestic and international companies that play vital roles in defense, intelligence, and civil and corporate security.