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Press Release -- August 26th, 2010
Source: Fibertech
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Court Square Capital Partners To Acquire Fibertech Networks

New alliance allows Fibertech to continue as a private company; current management and employees to remain intact

August 26, 2010 - Rochester, NY

Fibertech Networks, a leading regional provider of fiber optic bandwidth services, today announced that it has entered into a definitive agreement under which Court Square Capital Partners (“Court Square”) would acquire Fibertech.

Under the terms of the agreement, Court Square will acquire the company from its original investors, Nautic Partners and the team at Ridgemont Equity Partners.  The transaction is expected to close in the second half of 2010, following the satisfaction of customary closing conditions including all required regulatory approvals. The agreement has already been approved by the Fibertech Board of Directors and by Court Square Capital Partners.

“This opportunity allows Fibertech to continue to operate as a private company, serving and supporting our customers in the way they’ve come to expect from us over the past decade,” said John K. Purcell, President and CEO of Fibertech. “In addition, we have the flexibility to grow and expand our business with the support of a partner who has a long history of investment in the telecom and technology space, and of investing in profitable companies with strong growth potential. This new alliance represents the next stage of growth for Fibertech.”

This transaction will be financed through a combination of equity contributed by investment funds managed by Court Square, as well as investment by the senior management of Fibertech and new debt facilities.

Purcell said that, under the agreement, all employees of Fibertech will be retained in their current roles. Purcell, as well as Fibertech Networks Founder and COO Frank Chiaino, will remain with the company in their current positions. All other senior management personnel are expected to stay on with the company as well.

“Fibertech has developed into an exceptional company. They have built an outstanding combination of strong sales; excellent financial results and an unyielding commitment to employees and customers,” said Bernie Buonanno, a Managing Director of Nautic Partners LLC, the lead equity investor in Fibertech. “We were fortunate to partner with such an outstanding management team.”

About Court Square Capital Partners

Court Square Capital is one of the most experienced private equity firms in the industry. Since 1980, the group has invested in over 170 transactions across a wide array of sectors including: aerospace & defense, industrials, business services, technology, telecommunications, healthcare, media and travel. Court Square Capital currently manages over $4 billion of aggregate capital commitments and is based in New York, NY. For more information please refer to Court Square’s website at www.courtsquare.com.

About Nautic Partners
Nautic Partners is a Providence, RI based private equity firm with over $2.5 billion of equity capital under management.  The firm has completed over 100 transactions in partnership with management and delivered successful results to investors for over three decades.  Nautic targets equity investments of $25-75 million, representing majority ownership in companies with proven business models, defensible market positions, and strong growth potential.  Areas of focus include communications, business services, manufacturing, and healthcare. For more information please refer to Nautic’s website at www.nautic.com.

About Ridgemont Equity Partners
Ridgemont Equity Partners is a Charlotte-based private equity firm that specializes in middle market buyout and growth equity investments. Since 1993, the principals of Ridgemont have invested over $3.1 billion in 140 companies, previously as a part of Bank of America and its predecessors.  The firm focuses on investments in industries in which it has deep expertise, including basic industries, consumer & retail, energy, financial services, healthcare, and telecommunications/media/ technology.  For more information, please refer to Ridgemont’s website at www.ridgemontep.com.

About Fibertech Networks
Headquartered in Rochester, N.Y., Fibertech Networks is a leader in providing fiber-optic based network services throughout mid-size cities in the Eastern and Central regions of the United States. The company was founded in May of 2000 and has built metro-area fiber networks in 24 mid-size markets in the Eastern U.S. Further information about the company can be found at www.fibertech.com.

Oppenheimer and Co. Inc and Duff and Phelps were the financial advisors to Fibertech Networks, Bingham McCutchen LLP and Edwards Angell Palmer and Dodge LLP were the law firms advising Fibertech, and Dechert LLP law firm advised Court Square Partners.

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