ATX Networks Acquires Arcos Technologies from Xenia Venture Capital and Rotal Networks
ATX Networks Corp. ("ATX") is extremely pleased to announce that it has acquired Arcos Technologies Ltd. ("Arcos"), a rapidly growing Israeli-based video and broadcast technology company, focused on providing efficient video delivery solutions, addressing the growing demand for multiple private video streams in any format anywhere.
Arcos was founded in 2004 in Israel by CEO and co-founder, Yariv Reches and CTO and co-founder, Avi Eliyahu. Although the company name will change to ATX Networks Israel, Mr. Reches and his team will continue to lead the daily operations of the Israeli-based location. Mr. Reches stated, "Arcos was particularly attracted to ATX because of their strong presence in the digital video market. As the demand for high definition content and video-on-demand becomes stronger, Arcos' advanced solutions and ATX's existing customer relationships will position the companies for solid growth."
Ken Wildgoose, ATX's President and CEO stated, “ATX has had a long standing partnership with Arcos for several of ATX's existing, and highly successful, digital video solutions. Arcos' in-depth understanding of video delivery solutions will prove to be a valuable resource as we expand our business into the high growth video anywhere, anytime market. Everyone at ATX is eager to officially join forces with the team at Arcos to supply our innovative solutions to our customers globally.” ATX is backed by Pamlico Capital, a private equity firm founded in 1988 that invests in growing middle market companies and which invested in ATX in November 2010. “Pamlico has been extremely helpful in providing us the financial support and resources necessary to help us execute our growth strategy, and is a strong believer in the strategic benefits of this transaction,” stated Ken Wildgoose.
Anat Segal, Xenia’s CEO, commented: “We are happy to announce the sale of Arcos, which represents a significant exit for Xenia, validating our business model and proving our ability to identify high potential projects, and provide the investment and support necessary to make them commercial successes. We strongly believe the Arcos ATX transaction is a powerful combination, which will create additional significant value in the future”
Shay Haas, CEO of Rotal, added: “Rotal has enjoyed a long history of cooperation with ATX, and as an early investor in Arcos, making the introduction between the companies was a natural extension of that relationship. We look forward to continued cooperation with ATX in the future, and expect more opportunities will arise for the benefit of both of our companies over time.”
Mr. Ken Wildgoose
President & CEO
ATX Networks Corp.
Mr. Art Roselle
Partner Pamlico Capital
Ms. Anat Segal
CEO Xenia Venture Capital
Pamlico Capital is a private equity firm founded in 1988 that invests in growing middle market companies in North America. Pamlico Capital seeks control-oriented growth equity investments of up to $200 million alongside founders and proven leaders in its target industries: communications, healthcare, services and software. The firm, based in Charlotte, NC, has assets under management of almost $3.5 billion. For additional information, please visit www.pamlicocapital.com.