Matrix Telecom acquires Excel Telecommunications from Denham Capital

DALLAS & BOSTON, USA: Matrix Telecom Inc., a Platinum Equity company and provider of voice and data services to small and medium enterprise and residential customers across the United States, and Denham Capital, an energy - and commodities-focused global private equity firm, have signed a definitive agreement for Matrix to acquire substantially all the customer relationships and assets of Irving-based Comtel Telcom Assets LP, operating as Excel Telecommunications from Denham.

Financial terms of the transaction were not disclosed.

“By acquiring Excel, we are demonstrating our commitment to making Matrix the highest-quality, most affordable choice for wholesale voice services in the telecommunications industry,” said Charles G. “Chuck” Taylor, Jr., President and CEO of Matrix. “This acquisition builds on other recently announced Matrix initiatives to broaden its domestic and international wholesale voice services offering.”

Excel Telecommunications provides a suite of high quality, integrated voice and data communications products and services to residential, commercial and carrier customers. Based on its Veraz softswitching platform, it has developed and deployed next generation, IP-based voice and data services.

Excel provides Matrix with complementary network coverage, state-of-the art switching, efficient back-office technologies, highly loyal customers and an experienced, customer-centric work force.

“Matrix specializes in smoothly integrating complex telecom acquisitions. It was extremely important to Excel to identify an acquirer in whom our customers and employees can be confident,” added Jerry McGee, CEO of Excel. “In addition to its wholesale strategy, the Matrix business and residential customer bases closely mirror those of Excel, with similar service bundles and customer support models geared to customer satisfaction and loyalty. Matrix and Excel are a great fit.”

The acquisition is Matrix’s third in the last four years, having successfully integrated the small business group of Global Crossing in 2006 and certain assets of the former Trinsic Communications in 2007.

“Matrix has a strong track record seamlessly integrating businesses and the ability to grow through strategic add-on acquisitions,” said Brad Holtmeier, Vice President at Platinum who is leading the investment. “This acquisition is great news for Excel’s valued customers and further demonstrates Matrix and Platinum’s commitment to industry leadership.”

“Since Denham’s acquisition of Excel in late 2005, the management team has transformed the company into an attractive platform for future growth,” said Bill Zartler, Managing Partner and head of Denham's Energy Infrastructure Group. “As with other recent exit transactions Denham has concluded, including the sale of SunRay Renewable Energy and Trinity Coal, Matrix saw the value in the platform that management and Denham created, and is well-suited to take Excel to the next level.”

The transaction is expected to close in the second quarter of 2010 and is subject to, among other conditions, receipt of approvals of the FCC and applicable state regulatory authorities.