Starting February off with a bang, TPx, the managed services and connectivity provider, announced it is combining with Pensare Acquisition Corp. in a $343 million transaction to become a Nasdaq-listed public company.
Pensare already is traded on the Nasdaq, and when the transaction closes, it will be renamed TPx Corp., trading under the ticker symbol TPXC. Pensare will pay $248 million in cash and $95 million in equity to TPx equity holders.
Dick Jalkut, TPx‘s CEO, tells Channel Partners that Pensare is a special purpose acquisition company (SPAC), a “blank check” firm that looks for companies to acquire and bring to the public market.
“Pensare specializes in telecommunications, media and technology, and [was] looking for a leading managed service provider that could generate and sustain long-term shareholder value and growth, so this was a mutually beneficial fit,” he said. “We’re working diligently with our partners at Pensare to close the deal in the coming months.”
The Pensare and TPx boards of directors have approved the proposed transaction. Now it awaits Pensare stockholder approval, other conditions and approvals.
“This doesn’t change our strategy; it simply accelerates it,” Jalkut said. “That includes the channel. The agreement offers TPx more resources to help it grow and innovate even faster, which enables the partner community to continue to leverage TPx for UCaaS, managed IT and other services now and well into the future.”
Agents will continue to work with the same channel managers they do today and the TPx management team will remain the same, he said.
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“This transaction will give TPx more resources to accelerate its growth in new products, new services, geographic expansion and future acquisitions as well, all of which will benefit the channel because they will be able to depend upon the same trusted brand they have over the years, but with deeper, more advanced products on a broader basis,” Jalkut said.
TelePacific Communications rebranded as TPx in spring 2017 and provides UC and cloud-focused managed IT services, including cloud connectivity, SD-WAN and managed security, with about 30,000 customers nationwide in more than 53,000 locations.
“TPx already has a great competitive advantage given its broad product offering and industry-leading customer service evidenced in its high-net promoter score and low customer churn levels,” Jalkut said. “This transaction allows TPx to leverage those core strengths with additional resources to accelerate its growth. TPx is counting on the agent channel to acquire market share on a nationwide basis. We’ve already made heavy investments in 2018 by adding 10-15 channel managers across the country. We are excited to be able to depend upon the channel to help us take advantage of our capabilities on a national basis.”
“Following Pensare’s comprehensive search process, we feel confident that the combination with TPx is positioned to create substantial value for stockholders over the long run,” said Darrell Mays, Pensare’s CEO. “The TPx executive team has grown revenues each of the past 16 years, and has achieved a best-in-class average revenue per user in managed services. This transaction provides TPx with an opportunity to strengthen its leadership position and capture more share of the fast-growing UC and cloud-focused managed IT markets. We are thrilled to help facilitate TPx’s listing on Nasdaq and excited to partner with Dick and the entire TPx team.”
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August 22 2019 @ 21:32:04 UTC