Los Angeles, California-based unified communications (UC) company TPx Communications is going public.
To do so, the UC and MSP (managed services provider) is merging with Pensare Acquisition Corp. in a $343 million deal. The deal will transform TPx into a Nasdaq-listed public company.
TPx CEO Dick Jalkut called the deal a key milestone in TPx’s history. “In addition, with access to new sources of capital and liquidity, we believe that TPx will be able to accelerate our historical growth and provide even greater value to our shareholders, employees and customers,” he said.
Pensare will pay $248 million in cash and $95 million in Pensare equity to TPx shareholders. At the same time, institutional investors are expected to purchase equity in the combined company through a proposed private placement.
The firm expects to use the net cash proceeds to reduce TPx’s current debt, fund its growth plan, and allow TPx to pursue future acquisitions.
Pensare was already trading on the Nasdaq under the ticker WRLS, but the company had no significant operations according to a Bloomberg profile on the company. Atlanta,Georgia-based Pensare was created as a blank check company, formed with the goal of entering a merger, making a stock purchase, recapitalization, reorganization, or other similar business combination in the U.S. wireless teleco industry.
Pensare's leaders include by Chairman Larry Mock, CEO Darrell J. Mays, President Robert Willis, and Chief Strategy Officer David Panton.
This deal will see Pensare change its name to TPx Corp and continue trading on the Nasdaq under the new ticker symbol “TPXC.”
TPx’s management team, led by CEO Dick Jalkut and CFO Tim Medina, will stay onboard at the company while Mays will serve as Vice Chairman of the board of directors, the company said.
TPx’s current controlling stockholders, including the largest shareholder, Investcorp, will remain as equity holders in the combined entity, according to TPx.
TPx was founded in 1998 as a provider of Unified Communications and cloud-focused managed IT services provider. The company now has roughly 30,000 customers in over 53,000 locations around the United States.
TPx has achieved 16 years of consecutive growth, showing significant gains in its Managed Services segment, the company asserts.
TPx has M&A experience, having acquired nine companies since around 2004.
Mergers and Acquisitions: Unified Communications
M&A activity within the unified communications sector has been steady. Among the driving factors: More enterprises than ever are moving from legacy phone services to VoIP and cloud-driven solutions. In response, vendors and investors have flooded the market with monthly subscription services.
ChannelE2E has tracked a number of deals, including:
- December 2018: Momentum Telecom acquired Phoenix, Arizona-based CloudNet Group, a provider of cloud voice, mobility, SD-WAN, contact center, and other unified communications solutions.
- June 2018: SKC Communication Products bought unified communication and collaboration solutions provider GBH Communications.
- April 2018: An investment group led by Searchlight Capital Partners paid $2 billion cash for Mitel.
- February 2018: LogMeIn acquired Jive Communications for $342 million in cash and up to $15 million in future considerations.
- September 2017: Intermedia acquired AnyMeeting.