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Entries in Deals - Other (22)

Monday
May072012
DateMonday, May 7, 2012 at 1:43PM

Nokia Completes Sale of its Broadband Access Business to ADTRAN

Source: Nokia Siemens Press Release

Nokia Siemens Networks announced that the company has completed the transaction to sell its fixed line Broadband Access business and associated professional services and network management solutions to ADTRAN, Inc., (Nasdaq:ADTN). The transaction was initially announced in December 2011.

As of May 4, 2012, the business, including approximately 340 employees globally in engineering, R&D, sales and professional services, transferred to ADTRAN.

AuthorDeborah Rand | Comments Off | | | Print ArticlePrint Article
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Sunday
Apr292012
DateSunday, April 29, 2012 at 1:27PM

AT&T; Unloads Yellow Pages to Cerebus for $950m

Directory Business in Decline But Still Generating Attractive Cash Flow

AT&T decided the time was right to exit the directory business in April, dealing its majority stake in Yellow Pages to private equity firm Cerebus Capital for $950m in a deal announced April 9. Cerebus will pay the telco $750m in cash with the remaining balance covered by a $200m note. In return, Cerebus will receive approximately 1,200 printed Yellow Pages editions in 22 states along with the associated Yellow Pages URLs including yellowpages.com—a site which AT&T shelled out $100m for back in 2004.

Yellow Pages, which represents AT&T’s advertising solutions segment, has experienced significant revenue declines in recent years as print advertising dollars have dried up. The segment’s top line has declined 16%-17% in each of the past two years, finishing up 2011 with $3.3b.  Cerebus picks up Yellow Pages at a relatively cheap price of 0.3x revenue and 0.9x operating cash flow.

Despite the declines in advertising dollars, the directory business still generated around $1b in operating cash flow in 2011—which is a clear upside for Cerebus. The PE firm however will be tasked with increasing Yellow Pages online advertising revenues in an increasingly competitive landscape.  Yelp has moved into the online directory space, and as with all things online, Yellow Pages is also forced to compete with Google. AT&T has increased Yellow Pages’ mobile presence with mobile apps such as YP.com, but Cerebus will need to do more to reverse the downward revenue trends of recent years.

AuthorAdam Brissette | Comments Off | | | Print ArticlePrint Article
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Tuesday
Apr102012
DateTuesday, April 10, 2012 at 7:25AM

AT&T; to Sell Yellow Pages to Cerberus Management

Source: AT&T Press Release

AT&T (NYSE:T) announced that an affiliate of Cerberus Capital Management, L.P. has agreed to acquire AT&T Advertising Solutions and AT&T Interactive. As part of the transaction, AT&T will receive a 47-percent equity interest in the new entity, YP Holdings LLC (YP).

YP will include: 

  • Approximately 1,200 The Real Yellow Pages print directory titles reaching about 150 million homes and businesses in 22 states;
  • YP.com, a top 40 website according to a leading global digital measurement firm;
  • The YP Local Ad Network, which includes more than 300 mobile and online publisher websites nationwide providing digital reach to more than 71 million monthly unique visitors; and
  • The YPmobile app, which allows users to search local businesses from their mobile devices.

The business units generated approximately $3.3 billion in revenues in 2011. Among other agreements, YP has agreed to honor existing union contracts. 

The transaction includes assets of AT&T Advertising Solutions, which delivers sales and customer support, and AT&T Interactive, which conducts interactive product development. It does not include the recently formed AT&T AdWorks, a New York-based operation that sells advertising offerings across
3-screen platforms (online, mobile and TV). 

The transaction is subject to Hart Scott Rodino notification with the U.S. Department of Justice and is expected to close in mid-year 2012. For the business units, AT&T will receive approximately $750 million in cash, subject to adjustment primarily related to timing of closing, a $200 million note and a 47-percent equity interest in YP. AT&T expects a minimal effect on 2012 earnings from the transaction and does not expect to record a material gain or loss on the transaction. 

AuthorDeborah Rand | Comments Off | | | Print ArticlePrint Article
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Tuesday
Apr032012
DateTuesday, April 3, 2012 at 9:14AM

Oxford Networks Acquires IT Firm, Launches Data Center

Source: Oxford Networks Press Release

Oxford Networks announced that it is launching its commercial data services center, Oxford Networks Data Center, located at the former high-security Brunswick Naval Air Station.  As part of the data center launch, Oxford Networks has also acquired IT consulting firm Norton Lamb & Company to provide managed IT services at the new facility.  Norton Lamb & Company will take on the Oxford Networks Data Center management in addition to the clients they already serve. 

The Oxford Networks Data Center boasts multiple discrete broadband paths to major backbones and multiple network entry points making it accessible to businesses across the country and worldwide.  The facility will provide server collocation space, managed IT services, disaster recovery services, secure vault data storage, and virtualization services. As a re-purposed former high-security military communications center, the data center provides military grade infrastructure capable of securing an organizations most sensitive information.

Norton Lamb & Company is a twenty year old IT consulting firm located in Falmouth, Maine.  They provide outsourced Information Technology solutions for manufacturing, healthcare, retail/distribution companies and government entities in New England and beyond.

With the addition of the Oxford Networks Data Center and the acquisition of Norton Lamb & Company, Oxford Networks will add twenty new people to its staff of 120 employees.  Matt Jacobson, former gubernatorial candidate and Maine & Company President and CEO, has been named Executive Vice President of Sales for Oxford Networks.

AuthorDeborah Rand | Comments Off | | | Print ArticlePrint Article
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Tuesday
Mar272012
DateTuesday, March 27, 2012 at 12:07PM

Montana Cooperative Acquires Web Hosting Company

Source: Missoulian

According to an article on the Missoulian, Blackfoot Telecommunications Group has acquired local web hosting company Modwest. It’s a move, representatives from both companies said, that creates a symbiotic relationship for two local businesses, allowing each to continue growth here. 

The article said, Blackfoot plans to keep Modwest a stand-alone company and use Modwest’s expertise and equipment to expand its existing web hosting services and customer base. The process has begun to integrate Modwest’s employees into the Blackfoot headquarters on North Russell Street. 

“I’d like to say we were proactively looking at Modwest, but we weren’t. John Masterson’s call to us was a wake-up call that it was a good opportunity for us,” Blackfoot ceo Bill Squires said. 

“One of the things we provide over the Internet is voice service, but the majority of the space in the pipe is used to provide broadband data and Internet services. Internet services are key to the future success of the company; our customers want to be part of the global economy,” Squires said.

AuthorDeborah Rand | Comments Off | | | Print ArticlePrint Article
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