Technology, Media & Telecommunications
Technology, Media & Telecommunications Team Update
GTCR has been very active in 2012, completing more than 20 acquisitions across the Technology, Media & Telecommunications, Financial Services & Technology and Healthcare industries. From our inception in 1980, GTCR has partnered with management teams to build and transform growth businesses, having invested more than $9 billion in more than 200 companies. In 2011, we closed our 10th investment fund, the firm’s largest to date, with $3.25 billion of equity capital commitments.
Since our founding, we have made more than 40 platform investments in the Technology, Media & Telecommunications sector. In 2012, the GTCR TMT team has made three new platform investments: Land Lease Group, CAMP Systems and Zayo. We have also completed nine add-on acquisitions at five portfolio companies since the beginning of the year. In total, we have invested more than $600 million of GTCR capital in the TMT sector in 2012 to date.
We have developed deep domain expertise and investment experience within five core sub-sectors of the TMT industry: software & online services, telecom & networks, data & information services, government services/aerospace & defense and media.
Consistent with our “Leaders Strategy,” we seek to recruit and partner with exceptional management teams. This is our critical first step in identifying, acquiring and building market-leading companies through acquisitions and organic growth. We continue to actively seek investments across our core sub-verticals, both as add-on acquisitions for our existing portfolio companies and as stand-alone platform investments.*Please see below for a complete list of all of our investments in the Technology, Media & Telecommunications sector since 1997.
- Partnered with CEO Dan Caruso and other senior executives to make an investment in Zayo Group to finance the acquisition of AboveNet in July 2012
- Zayo and AboveNet are leading providers of fiber-based bandwidth infrastructure services with a combined network that has more than 4.6 million fiber miles, more than 61,000 route miles and approximately 9,000 on-net buildings
- The Zayo and AboveNet business models are closely aligned in providing high bandwidth communications services to enterprise, carrier and government customers
- Also announced acquisition of FiberGate in June 2012, a DC-based provider of dark fiber solutions
- Partnered with CEO Ken Gray, COO Vibby Gottemukkala and other senior executives to acquire CAMP Systems in May 2012
- CAMP is a leading global provider of SaaS-based aircraft maintenance tracking workflow software and information services to the business aviation market
- The company helps aircraft operators and owners improve aircraft safety, ensure regulatory compliance and enhance aircraft value at resale
- Also acquired Avtrak, one of CAMP’s largest competitors, in July to provide the company with a well-established brand name, additional customers and accretive earnings
- Partnered with Jarred Saba and Andrew Corkern to form Land Lease Group in March 2012
- Land Lease Group, a real estate investment trust, acquires interests in land leases associated with wireless tower sites in order to aggregate attractive lease streams from these assets
- CEO Saba and Managing Director Corkern, founders of Land Lease Group, are alumni of industry pioneer Wireless Capital Partners and have extensive experience managing the origination and underwriting of these assets
- Mondee is a technology-enabled travel distribution business focused on the private-fare consolidator channel
- Acquired consolidator SkyLink Travel and two technology businesses, cFares and ExploreTrip, in September 2011
- Also acquired consolidators C&H International in January 2012 and Transam Travel in June 2012; the combined business now represents the largest airline consolidator in North America with approximately $1.2 billion in bookings per year
- Currently introducing back-end processing and front-end portal technology
- Acquired Ticom Geomatics in April 2012, which adds highly complementary precision geolocation and COMINT capabilities to Six3’s existing offerings
- Completed acquisition of WKDN-FM in Philadelphia from Family Radio in February 2012
- In February 2012, extended its lease by 37 years at San Diego, a key sole-provider site, following an RFP competition
CAMP Systems Acquisition and Incremental Facility
- GTCR completed a $230 million first lien debt facility and $115 million second lien debt facility to finance the acquisition of CAMP Systems
- Covenant-lite senior secured loan package was syndicated by Deustche Bank, along with Credit Suisse, RBC Capital Markets and UBS
- Utilized the accordion on its first lien facility in July to raise $25 million of additional debt to help finance the acquisition of Avtrak
Zayo Group Acquisition Financing
- Zayo/AboveNet transaction financed by $1.62 billion of senior secured term loans, $750 million of senior secured notes and $500 million of unsecured notes
- $3.12 billion debt financing syndicated by Morgan Stanley, along with Barclays, UBS, SunTrust, Goldman Sachs and RBC Capital Markets
Six3 Systems Facility Utilization
- Utilized revolver capacity to help finance the acquisition of Ticom Geomatics in April 2012
- Debt held by Bank of America, SunTrust, Citizens, Raymond James, KeyBank and Barclays
Global internet traffic is forecasted to nearly quadruple from 2011 to 2016. Which companies and industries are best positioned to capitalize on this trend?
Stephen Master has just returned to the firm as a Vice President after completing his MBA at the University of Chicago Booth School of Business. Prior to attending business school, Stephen worked at the firm as an Associate for more than three years.
Alex Feld joined GTCR as an Associate in July 2012. Previously, he worked as an Investment Banking Analyst at Barclays Capital. Alex graduated from the University of Michigan with a BBA with High Distinction in Finance.
Andrew O’Dekirk joined GTCR as an Associate in July 2012. Prior to that, he worked as an Investment Banking Analyst in the Global Industrials Group at Citigroup. Andrew graduated from the University of Michigan with a BBA with High Distinction in Finance & Accounting.
Associate Jason Genrich will be staying for a third year.
Associate David Vennettilli will be staying for a third year.
Associate Michael Yu will be staying for a third year.
AETEA Information Technology
Comsys Technical Services
Global Imaging Systems
Global Traffic Network
International Computer Graphics
ITI Marketing Services
National Computer Print
Land Lease Group
Vista Information Technologies
This newsletter is not an offer to sell or a solicitation of an offer to buy an interest in any private fund sponsored by GTCR LLC (“GTCR”) or any of its affiliates, and was not prepared for existing or potential investors in such funds. This newsletter may not be relied upon in any manner as legal, tax or investment advice, and is not to be used for any investment purpose whatsoever. GTCR assumes no responsibility or liability for, and expressly disclaims any obligation or undertaking to update, the information contained in this newsletter.