An affiliate of Arcapita Inc. has acquired Cypress Communications Holding Co., Inc. (OTCBB: CYHI), a converged voice and data communication solutions provider, in a transaction valued at $41.5 million. As of June 30, Cypress Communications becomes a privately held company and its common stock will no longer be traded on the Over-The-Counter bulletin board. Cypress Communications provides communications services, including local, long distance, and data to small and mid-sized businesses in more than 1,300 commercial office buildings in 25 major metropolitan U.S. markets. In addition to operating the nation’s largest hosted PBX network, Cypress offers a fully managed IP communications solution.
Effective immediately, telecom industry veteran Robert D. Shingler is the new President and CEO of Cypress Communications.
Arcapita Executive Director Charles H. Ogburn said, “Cypress Communications has a strong reputation of providing high-quality, innovative services via its unique set of assets. Bob Shingler’s growth vision for the company coupled with his successful track record were significant factors in our decision to invest in Cypress. Our debt-free, all equity capital structure is part of our strategy to allow Cypress Communications to accelerate its growth. With Bob at the helm, we’re confident Cypress will build on its nationwide presence in serving small to mid-sized business customers, and will expand its use of new technologies in adding new services and reaching new customers.” Shingler added, “Cypress Communications is poised for significant growth. The infrastructure is in place for rapid expansion while providing the same high quality service enjoyed by our existing customer base of over 100,000 users. We have the necessary talent to develop new solutions that will propel us further into our leadership role. With the support of Arcapita and its affiliates we will be able to move quickly and proactively in a rapidly growing and changing marketplace.”
Shingler has more than 25 years of domestic and international telecom experience. He most recently served as president of Broadwing Communications in Austin, Texas, a $900 million integrated communications company with 1,500 employees nationwide. His experience also includes 20 years with units of BellSouth in the U.S. and Europe. While at BellSouth, Shingler developed and led several ventures, including serving as executive vice president and deputy CEO of Sonofon A/S, a nationwide provider of mobile communications in Denmark. Shingler holds an MBA in Finance from Georgia State University and a Bachelor’s of Science in Business and Computer Science from Vanderbilt University.
This is the third public company that Arcapita and its affiliates have taken private recently. In October, Arcapita closed the acquisition of Loehmann’s Holdings, Inc., a leading specialty retailer of well-known designer and brand name women’s and men’s fashion apparel for $177 million. In December, Arcapita and its affiliates acquired Church’s ChickenTM, formerly a division of publicly-held AFC Enterprises.
About Arcapita
Arcapita is a global investment group with offices in Atlanta, London and Bahrain. Arcapita’s main lines of business include corporate investment, real estate investment and asset based investment. Arcapita’s corporate investment line of business was founded in 1997 and operates out of Atlanta and London. Since 1998, Arcapita’s corporate investment professionals have arranged for equity investments of more than $1 billion in 17 transactions with an aggregate enterprise value of over $2 billion. Until February 28, 2005, Arcapita’s U.S. subsidiary was known as Crescent Capital.
Other companies in Arcapita’s current portfolio include TLC Health Care Services, the second largest provider of Medicare home nursing services in the U.S.; Caribou Coffee, the nation’s second largest company-owned specialty retailer of premium brewed and roasted whole bean coffee; Church’s ChickenTM, the third largest chicken QSR in the world; Loehmann’s, a leading specialty retailer of well-known designer and brand name women’s and men’s fashion apparel, accessories and shoes; and Cirrus, the largest manufacturer of single-engine, piston-powered, general aviation aircraft in the world.
About Cypress Communications
Cypress Communications is the preferred communication solution provider in more than 1,300 commercial office buildings in 25 major metropolitan U.S. markets. Cypress uses its fiber optic and copper broadband infrastructure to connect more than 100,000 employees for over 8,500 small- and medium-sized businesses in commercial office buildings. As a single-source provider of communication solutions, Cypress supplies advanced digital and IP phones, unlimited local and long distance calling, business-class Internet connectivity, firewalls, security and VPN solutions, audio/web conferencing and business television solutions. The Cypress EZ Officesm product suite provides a premium bundled solution with one number to call for support, one simple bill and the highest level of service available.
In addition to operating an extensive Cisco-powered network and the nation’s largest hosted PBX network, Cypress offers a fully managed IP communications solution where Cypress can establish, monitor and manage voice quality of service for the entire network – as compared to delivery by unmanaged connections or the public Internet. Cypress Communications Holding Company, Inc., is headquartered in Atlanta, GA.