COMPTEL PLUS — Dallas-based integrated communications provider Matrix Telecom has agreed to acquire its neighbor from Irving, Texas, Comtel Telecom Assets LP, operating as Excel Telecommunications.
Matrix Telecom is a Platinum Equity company; Excel is owned by Denham Capital. Financial terms were not disclosed, but Matrix is buying what it calls substantially all the customer relationships and assets of Excel, which provides a suite of integrated voice and data products and services to residential, commercial and carrier customers. Its network is based on a Veraz softswitching platform.
Excel will continue to operate its territory under its current name. “The Matrix name is not what we are trying to sell in the marketplace, said Chuck Taylor, president and CEO of Matrix.
Matrix announced its entry into the wholesale voice transport business in February 2009 and at the time added Shaun T. Moore as director of wholesale business development. This acquisition, Taylor said, will build on this initiative and broaden its domestic and international wholesale voice services offering.
Excel CEO Jerry McGee said the companies’ business and residential customer bases closely mirror each other and have similar service bundles and customer support models. “It is rare when two companies get to come together like this,” he said. “We have been growing in places they haven’t and they have experience in the international space — we haven’t.”
This is Matrix’s third acquisition in four years, beginning with the 2006 buy of Global Crossing’s small business group. It also bought certain assets of the former Trinsic Communications in 2007.
“Having the backing of Platinum Equity and access to capital is very much a plus,” Taylor said. Matrix already operates at the high end of scale in terms of EBITDA. And together we are always looking for opportunities to expand.”
Denham Capital acquired Excel in 2005. This transaction is expected to close in the second quarter, subject to approvals by the FCC and applicable state regulatory authorities.
Matrix is licensed as a facilities-based CLEC and long-distance provider in 49 states plus the District of Columbia. It has 200 employees. In addition to its headquarters in Dallas, Matrix also has operations in Rochester, N.Y. and Atmore, Ala.
