Business Combination Creates One of the Largest Metro Fiber Operators in Texas
HOUSTON (May 30, 2017) – LOGIX Communications (“LOGIX”), a market-leading fiber-optic bandwidth infrastructure services provider based in Texas, today announced the completion of definitive agreements to acquire Alpheus Communications (“Alpheus”) from its current private equity owners, The Gores Group and Scott Widham. Alpheus is a leading provider of metro-regional fiber, data center and managed network solutions to enterprise customers and wholesale customers in Texas. With the acquisition of Alpheus, LOGIX will add 2,800 route miles of long-haul fiber and 1,900 route miles of metro fiber to its existing network. “The acquisition of Alpheus further strengthens LOGIX’s position as a leading fiber-optic communications provider in Texas,” said Matt Murphy, LOGIX interim CEO, and Partner at Astra Capital Management. “The combined company will serve over 12,300 enterprise and carrier customers with a complete portfolio of data, voice, managed and data center services. With an extensive fiber footprint in four of the fastest growing cities in the country – Houston, Dallas, Austin and San Antonio – LOGIX immediately becomes one of the largest fiber operators in Texas, offering superior local customer care and support to its clients.” “For over 20 years and throughout our partnership with Gores, Alpheus has built an outstanding reputation as being very flexible and responsive to customer needs when low-latency and uptime are essential,” said Alpheus CEO Scott Widham. “By combining operations with LOGIX, we are creating a powerful regional provider of scale in Texas. The combined networks and products will allow us to offer the very best to our carrier and growing enterprise customer base. LOGIX shares our dedication to superior, locally based customer care teams and total commitment to network reliability. Together, we anticipate strong growth and success for our clients and employees.” Mark Johnson, Managing Partner at Astra Capital Management and member of the LOGIX board of directors, added, “Alpheus’ network complements LOGIX’s operations by adding significant fiber assets, five data centers, managed services, a wholesale business, agent channel and a high-quality customer base enabling LOGIX to accelerate the growth of its operations.” The transaction is expected to close in the fourth quarter of 2017, following the satisfaction of customary regulatory closing conditions. SunTrust Robinson Humphrey will serve as lead arranger and book runner for the acquisition financing. Financial terms of the transaction were not disclosed. About LOGIX Communications LOGIX is a fiber-rich, competitive telecom company that leverages over three decades of expansion, innovation, and investment to provide a wide range of communications services to business customers in large and fast-growing metro markets in Texas and Oklahoma. In June of 2016, LOGIX was acquired by a private equity group consortium led by Astra Capital Management. For more information, please visit logix.com. About Astra Capital Management Astra Capital Management is a Washington, D.C.-based, private equity firm that invests in growth businesses in the communications and technology services sectors. Astra targets highly scalable companies with proven business models that have positive free cash flow and significant growth potential. Post investment, Astra works closely with managers to drive value creation through strategic repositioning, revenue growth, and operational enhancements. About The Gores Group The Gores Group, founded in 1987 by Alec Gores, is a global investment firm focused on acquiring controlling interests in mature and growing businesses which can benefit from the firm's operating experience and flexible capital base. The firm combines the operational expertise and detailed due diligence capabilities of a strategic buyer with the seasoned M&A team of a traditional financial buyer. Over its more than 25 year history, The Gores Group has become a leading investor having demonstrated a reliable track record of creating value in its portfolio companies alongside management. Headquartered in Los Angeles, The Gores Group maintains offices in Boulder, CO, and London. For more information, please visit www.gores.com. Forward-Looking Statements Statements included herein may constitute “forward-looking statements”, which relate to future events, the future performance, or financial condition of LOGIX Communications following the acquisition of Alpheus Communications. These statements are not guarantees of future performance, condition, or results and involve a number of risks and uncertainties. Actual results and condition may differ materially from those in the forward-looking statements as a result of a number of factors.