Pamlico Capital Acquires ATX Networks
Pamlico Capital announced today that it has acquired ATX Networks, headquartered in Ajax, Ontario. 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.”
ATX Networks was advised by Oppenheimer & Co. (financial advisor) and Blake, Cassels & Graydon LLP (legal advisor). Pamlico was advised by Alston & Bird LLP (legal advisor).
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: business & technology services, communications, and healthcare. Since inception, the firm, based in Charlotte, NC, has invested approximately $4 billion. For additional information, please visit www.pamlicocapital.com.