Pension Fund, Private Equity Made Acquisition in Buffalo Area Possible
Posted on: Wednesday, 1 February 2006, 21:00 CST
By Larry Rulison, Times Union, Albany, N.Y.
Feb. 1--COLONIE -- IPLogic Inc. of Latham has acquired a telecommunications firm outside Buffalo with a $3 million investment from New York's pension fund and a Rochester private equity fund.
IPLogic used the cash and company stock to buy TR Communications Inc. of Tonawanda, although the exact value of the deal was not disclosed.
As a result, IPLogic, which sells computer networking services and employs 45 people in an office park near Albany International Airport, will grow significantly.
IPLogic's client list includes the state of New York and major institutions like Albany Medical Center and Union College. It had $23 million in sales last year.
With the acquisition, which officially occurred last month, IPLogic will have 115 employees, $40 million in annual sales and seven offices. TR Communications' clients included HSBC Bank, West Virginia University, Erie County Medical Center and New York state.
The company also plans to hire as many as 100 new employees for high-paying positions within the next three to five years, with 30 of those hires being local. Highly qualified computer network technicians and salespeople can make more than $100,000 a year.
State Comptroller Alan Hevesi and Senate Majority Leader Joseph Bruno, R-Brunswick, announced the deal Tuesday at IPLogic's offices. The state pension fund and the Rochester private equity firm DeltaPoint Capital Management LLC had already invested $1.5 million in IPLogic last spring. DeltaPoint is now the single largest shareholder in the privately held company.
Kenneth Yanneck, IPLogic's co-founder and president, said the company had been seeking to expand west throughout the state toward Buffalo.
Kevin Kelly, the former president of TR Communications who will now serve as chief marketing officer of IPLogic, said his company had wanted to grow and was introduced to IPLogic in the fall through DeltaPoint. He said his company's law firm and accounting firm share a luxury box with DeltaPoint at Ralph Wilson Stadium, home to the Buffalo Bills.
Merger talks began after that.
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Source: Times Union
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