Insights

Allegiance Capital Facilitates Retail Telecom Acquisition

Atlantic Street Capital Acquires Premium Verizon Retailers Select Communications and The Wireless Center
Allegiance Capital Corporation announced today that it has facilitated two add-on acquisitions: Select Communications (based in Plymouth, MN) and The Wireless Center (based in Cleveland, OH) for its clients, premium Verizon retailer, Z Wireless, and middle market private equity group, Atlantic Street Capital. These acquisitions will enable the retailer to continue to grow its operations.
Headquartered in Sioux Falls, SD, Z Wireless markets and sells a full suite of Verizon Wireless products and services from over 100 stores in 9 Midwestern states.  It is the largest operator of exclusive Verizon Wireless Premium Retailer stores in that region. In addition to wireless services, the company also sells a comprehensive mix of wireless devices, including smartphones, voice phones, tablets, and a broad range of accessories to be used with these devices. Z Wireless has grown from 85 locations to over 230 locations in the past year.
“Telecommunications continues to exhibit a degree of evolution and competition that few industries ever experience. The speed of change, the evolution of devices, the sophistication of the network and its tools constantly drive this ever-challenging industry, as consumers demand more convenience and perfect service,” said Brent Earles, Senior Vice President at Allegiance Capital Corporation and former telecom executive and consultant. “The network is the central nervous system of telecom performance, where long-term evolution is quickly becoming an immediate requirement of success. Z Wireless and Atlantic Street Capital continue to demonstrate remarkable leadership as part of the Verizon network of premium retailers.”
Andy Wilkins, the Partner at Atlantic Street who oversees wireless telecommunications, expressed his enthusiasm for the transaction: “Working with Allegiance Capital is always a pleasure.  The team at Allegiance does a superb job working with financial sponsors and entrepreneurs to facilitate successful transactions.  Brent Earles and Fred McCallister understand the telecommunications industry extraordinarily well, which allows for smoother due diligence and a comfortable closing process.  We look forward to continuing to grow this business with Allegiance in the coming months.”
Terms of the private transaction were not disclosed.
Brent Earles and Fred McCallister manage the Telecommunications M&A practice at Allegiance Capital Corporation. Allegiance Capital Corporation is currently involved in several engagements with other telecommunications and wireless retailers, and continues to develop ongoing relationships with leading wireless retailers nationwide.  To view a list of Current Engagements, visit www.AllCapCorp.com.  For information on how to sell a business, call: 214-217-7750.

About Z Wireless

Z Wireless is a retail sales and service company operating Verizon Premium Wireless Retail stores throughout the Midwest. Founded in 2000, Z Wireless has experienced exponential growth and expansion. 2006 marked a distinct change in philosophy as the company began its transformation from a local Verizon Authorized Wireless Retailer in Sioux Falls, SD to a regional Verizon Premium Wireless Retailer in the greater Midwest. With stores in 9 states, Z Wireless has grown from 85 locations to over 230 locations in the past year.

About Atlantic Street Capital

Atlantic Street Capital is a private equity firm that invests in middle market companies with between $25 and $150 million in revenue. The firm invests in fundamentally sound companies that will benefit from capital investment and value-adding strategic and operational initiatives. Atlantic Street Capital’s partners are hands-on investors who work closely with management to unlock their business’ underlying value and help them succeed. The firm is currently investing from Atlantic Street Capital Partners, L.P. II.  For more information, visit www.atlanticstreetcapital.com.

About Allegiance Capital Corporation

Allegiance Capital Corporation is an investment bank specializing in financing and selling businesses in the lower middle market. Allegiance Capital Corporation was recently named to American City Business Journal’s distinguished list of Who’s Who in Energy 2012, in addition to being named third on the list of 2011 Largest Investment Banking Firms in North Texas (Dallas Business Journal). Allegiance Capital Corporation has won multiple awards recognizing the value it delivers to clients. Examples include: 2009 Dealmaker of the Year (Dallas Business Journal), 2008 Boutique Investment Bank of the Year (M&A Advisor), and 2006 Investment Bank of the Year (Dallas Business Journal). Subscribe to the Capital Ideas blog by visiting: https://allcapcorp.com/category/library/blog/. Follow Allegiance Capital Corporation on LinkedIn and Twitter: @ALLCAP.