Morgenthaler Partners Acquires Voice and Data Services Businesses from Aztec Technology Partners, Inc.
CLEVELAND--(BUSINESS WIRE)--June 8, 2000
Acquisition Will Establish National Platform to Provide
Engineering, Furnishing, Installation and Maintenance Services to
Meet Voice, Video and Data Needs
Morgenthaler Partners, a national private equity firm with primary offices in Cleveland, Ohio and Menlo Park, California, announced today that it has acquired Compel, LLC, Fortran Corp. and Mahon Communications Corporation from Aztec Technology Partners, Inc. (Nasdaq:AZTC) of Braintree, Massachusetts for $34.5 million. Morgenthaler will use these three businesses as an initial platform to build a nationwide service company focused on voice, video and data communications infrastructure design, construction and maintenance. Aztec is divesting its non-core voice and data businesses in order to focus on e-Integration and e-Solutions business opportunities.
Each of the three companies will be run by existing management, and will continue to provide high quality, reliable service to their respective customers. The businesses have combined revenues of approximately $75 million.
Robert M. McClory, Jr., Founder and President of Compel, and Chief Executive Officer of the newly formed platform company consisting initially of Compel, Fortran and Mahon described the acquisition as a "winning move for us, Morgenthaler and Aztec. In the 20 years I have been in this business, the opportunities have never been greater. The explosion in demand for greater bandwidth and the private and public network infrastructure necessary to support this growth plays directly into Compel's, Fortran's and Mahon's strengths. And Morgenthaler is committed to provide ongoing support, assisting us in growing these businesses internally as well as through follow-on acquisitions."
Scott A. Fine, a partner at Morgenthaler, said, "We have been focused on the inside plant and network infrastructure markets for some time, due to their large size, high growth and potential for further consolidation. We were fortunate to have found Compel, Fortran and Mahon as Aztec repositions itself as an e-commerce solutions provider. The management teams at Compel, Fortran and Mahon each have decades of experience in building leading companies in their respective geographic and customer markets served. We are excited about the combined breadth and depth of the three companies."
About Compel, Fortran and Mahon
Compel is a leading full-service developer of large data communications and telecommunications operations. It provides expert site selection and data center design and construction, as well as extensive cabling services, physical infrastructure maintenance, outsource network management, and systems integration. Founded in 1979, Compel has demonstrated its industry leadership by serving such companies as American Express, The Boeing Company, the Children's Hospital of Los Angeles, Ernst & Young, IBM, The Los Angeles Times, Pacific Bell and the Phoenix Coyotes. Headquartered in Santa Fe Springs, California, it also has branch offices in San Francisco, California and Phoenix, Arizona. More information on Compel can be found at www.compel.net.
Fortran is a recognized leader in voice, data, and networking technologies. Since its start in 1979, Fortran's unique combination of world-class technology and regional responsiveness has delivered value to more than 5,000 customers. It is a single-source resource for all voice and data communications requirements, from planning and installing cabling to engineering voice and data communication solutions. Additionally, Fortran has a staff of software and hardware engineers who routinely develop new applications and enhancements for approximately 20 product lines. More information on Fortran can be found at www.fortran-corp.com.
Mahon develops integrated turnkey data, voice and video solutions. It designs, installs and maintains high performance fiber optic and copper cabling systems, telephony/voice processing systems, and video conferencing systems. It maintains a large staff of Registered Communications Distribution Designers (RCDD). More information on Mahon can be found at www.mahoncom.com.
About Morgenthaler Partners
Morgenthaler Partners, founded in 1968, has funded more than 150 companies. The firm focuses on early stage investments in information technology and health care as well as later stage management-led buyouts, buildups and recapitalizations. Representative recent portfolio investments include Versata (web infrastructure), Nuance Communications (speech recognition), New Focus (optical components), Lightwave Microsystems (optical ASICs), Endwave (broadband wireless), Pointshare (physician connectivity), Protogene (gene chips), APSCO (electronic components), International Flex (flexible circuit boards), and Cambridge International (engineered metal conveyor belts). With its recently closed fund, Morgenthaler Partners VI, the firm has $1-billion under management. More information on Morgenthaler can be found at www.morgenthaler.com.