Global Capacity to Pick Up Vanco’s U.S. Biz for $15M

Global Capacity announced Friday it plans to pick up the U.S.-based subsidiary of Vanco PLC, left on the table when the London-based global VNO was acquired by Reliance Globalcom Ltd. in May 2008.

Global expects to purchase Vanco Direct USA LLC (VDUL) for $15 million pending receipt of financing and federal regulatory approval. The transaction is expected to close in the next seven to 10 days, and is expected to be immediately accretive to Global Capacity’s results. Consolidated predictable revenue is expected to be $70 million on an annualized basis. The combined companies are expected to be cash flow positive in the first quarter of 2009, according to a press statement.

Capstone Investments is acting as the placement agent for the financing related to the acquisition.

The combined businesses will remain headquartered in Chicago and will operate under the Global Capacity brand. The company expects a 120-day transition period to integrate the new acquisition into its current operations.

Global Capacity bills itself as the first global telecom logistics provider, and expects the Vanco assets to solidify this position with the addition of software and intellectual property.

“Global Capacity operates in a highly fragmented, $200 billion global access network market where poor profit performance and margin pressure are forcing companies to identify new ways to control costs,” said Patrick Shutt, CEO of Global Capacity. “Our logistics business model helps customers control costs by automating manual processes such as pricing, provisioning, and network management, by optimizing their installed base of access networks through overcharge analysis, financial grooming, and physical grooming, and by helping them migrate networks to more efficient platforms through network innovations and technology refreshes. This acquisition strengthens our customer base, our product portfolio, and our financial performance, and we are very pleased to welcome Vanco Direct USA’s employees and customers to the Global Capacity family.”

Global Capacity’s parent company is Capital Growth Systems Inc.

Share this article: Email, Slashdot, Digg, Del.icio.us, Yahoo!MyWeb, Windows Live Favorites, Furl
Add this article feed to: RSS, My Yahoo, Newsgator, Bloglines