Another managed services provider is going to be changing hands. The private equity firm Siris says it has entered into a definitive agreement to acquire TPx Communications, taking over from Investcorp and Clarity Partners. TPx had earlier this year made and canceled plans to go public via a merger with Pensare Acquisition Corp.
TPx, which we once called TelePacific, is one of the more successful graduates of the CLEC-to-managed-services transition, emerging from its origins as a western regional CLEC with a bit of fiber into a national provider of UC, contact center, security, WAN, IT, and connectivity. That transition is never complete of course, and there are always legacy products to manage and nextgen ones to develop in nurture. Siris plans to provide the resources necessary to continue to grow its managed services revenue base. In 2016 the company bought DCSI, and last year the company sold and leased back its fiber footprint to Uniti Group.
Financial terms of the deal were not disclosed, but the deal won't close until the first half of 2020. TPx said in February that revenues for 2019 are forecast to be just over $700M with EBITDA of $135-140M. They serve some 30K organizations nationwide today.
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