Allegiance Capital Facilitates Retail Telecom Acquisition
Atlantic Street Capital Acquires Verizon Premium agent Z Wireless
Allegiance Capital Corporation announced today that it has facilitated a majority sale for its client, Z Wireless, to Atlantic Street Capital, a private equity firm investing in the lower middle market. Z Wireless is a leading retailer of Verizon Wireless voice and data communications services operating throughout the Great Plains. This move will enable the retailer to grow its operations in the $165 billion wireless communications industry in the U.S. that has over 320 million subscribers.
Headquartered in Sioux Falls, SD, Z Wireless markets and sells a full suite of Verizon Wireless products and services from over 100 stores in nine 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.
Kevin Tupy, Chief Executive Officer of Z Wireless who founded the company in 2000, will continue to oversee all aspects of day to day operations and become a Board member. “As successful as we have been for the past 10 years, there are still many opportunities for us to continue our year over year growth and to improve our operating capabilities. Allegiance Capital orchestrated the ideal transaction for Z Wireless, and I am very excited to have the Atlantic Street Capital team as partners. Z Wireless will continue to expand our market position in our geographic footprint.”
“The telecommunications industry remains one of the hottest and most exciting industries in the world,” said Brent Earles, Vice President at Allegiance Capital. “The advent of 4G devices and blazing network speeds has only begun. Over the next few years many more devices will come to the retail market, enabling end customers to enjoy mobile communications and computing at the speed of life. With the expertise of Atlantic Street Capital and the outstanding leadership of Kevin Tupy, Z Wireless is poised for substantial growth in the Verizon Premium Retail Agent channel.”
Peter Shabecoff, Atlantic Street Capital Managing Partner, indicated that the firm’s principals and operating executives have previous successful experience managing retail investments, including Elizabeth Arden – Red Door Spas and Equinox fitness centers. Shabecoff is enthusiastic about the transaction: “Z Wireless is an outstanding business that was created and developed by Kevin Tupy and we are very pleased to be working with him to further build this company throughout the Midwest. Kevin is an accomplished entrepreneur and the combination of his leadership and Atlantic Street Capital’s resources better enables us to propel the growth of this already strong business. The company has a great working relationship with Verizon founded on its leading market performance, and we hope to leverage those capabilities to build on the company’s strong position.”
Terms of the private transaction were not disclosed.
Allegiance Capital is currently involved in several engagements in telecommunications and retail. To view a list of current deals, visit www.AllCapCorp.com. For information on selling a business, call 214-217-7713.
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
Allegiance Capital Corporation is a private investment bank specializing in financing and selling businesses in the middle market. Founded in 1998, Allegiance Capital has won multiple awards recognizing the value it delivers to its clients, including 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). Learn more by subscribing to the Capital Ideas blog, and following Allegiance Capital on LinkedIn, Facebook, and Twitter@ALLCAP