H.I.G. Capital Forms Axian Communications, Inc.
10/25/2000 - H.I.G. Capital, a Miami-based private equity firm, has acquired three companies to form Axian Communications, Inc. ("Axian"), a leading provider of telecommunications infrastructure services including residential installation, central office build outs and upgrades, and structured cabling. Axian's scope of services provides its customers with a comprehensive solution for their telecommunications infrastructure needs. Axian's customers utilize the services to add capacity to their existing networks, expand their networks into new geographic markets and maintain their existing networks.
The Company's operating subsidiaries are headquartered in Houston, Texas; Chicago, Illinois; and Columbus, Ohio and collectively they operate in over 30 states nationwide. Each company has developed outstanding customer relationships with leading telecommunications and cable TV service providers such as Adelphia, Ameritech, AT&T, Insight Communications, MCI Worldcom, The Cable System, Time Warner, Williams Communications and a broad range of major commercial accounts.
The services provided by Axian include residential installation, central office services, and premise wiring. Residential installation provides customer oriented contract installation for the large telecommunications and cable television companies. Axian's residential installation services are used by full-spectrum broadband providers for the critical "last mile" to connect business and residential end users to the service provider's network infrastructure. Central office work involves the design and construction of central office facilities for various telecommunications providers. A central office facility provides switching and routing of calls made on the publicly switched telephone networks. Premise wiring involves the design and installation of voice, data and video networks inside office buildings, schools, and government facilities.
The telecommunications infrastructure services sector is an estimated $40 billion industry and is projected to grow approximately 10-15% annually over the next five years. The industry presents substantial growth opportunities for large companies that provide broad geographic coverage, comprehensive technical capabilities, and a high level of customer service and responsiveness. Market growth has been driven by the following trends: (i) new technology and infrastructure upgrades; (ii) telecom deregulation; (iii) increased outsourcing; and (iv) the emergence of preferred service providers.
Douglas Berman, a Managing Director at H.I.G. Capital, commented, "We are extremely excited with the formation of Axian Communications. We have acquired three companies with outstanding management teams, solid customer relationships, and excellent growth opportunities. We plan to significantly grow Axian through a combination of organic growth as well as through an aggressive acquisition plan. Having had substantial experience investing in the telecommunications infrastructure services industry, we have a clear vision of the roadmap to success."
About H.I.G. Capital
H.I.G. Capital (http://www.higcapital.com) is a leading private equity and venture capital investment firm with more than $750 million of equity capital under management and specializes in providing capital to small and medium-sized companies with attractive growth potential. H.I.G. has investments in over 40 portfolio companies with combined revenues in excess of $3 billion. H.I.G. has substantial operating, consulting, technology and financial management experience, enabling it to contribute meaningfully to its portfolio companies and has considerable expertise in information technology and e-Business.