Brightstar Capital Partners to Acquire Leading Telecommunications Services Provider QualTek in Partnership with Management
New capital will position QualTek to take advantage of increasing 5G wireless and fiber optic deployment by the telecommunications sector
NEW YORK, June 13, 2018 – Brightstar Capital Partners (“Brightstar”), a private investment firm that partners with closely-held, family-owned middle market companies, is pleased to announce it has signed a definitive agreement to acquire QualTek USA, LLC (“QualTek” or the “Company”) in partnership with senior management. Based in King of Prussia, PA, QualTek is a leading provider of turnkey solutions, including engineering, installation, fulfillment and program management, to the North American telecommunications and power sectors.
The transaction, which is expected to close in July, represents the third platform investment for Brightstar since the firm was founded in 2015. QualTek’s senior management team, led by CEO Scott Hisey, is committed to investing a significant portion of their proceeds as rollover equity in the transaction and will continue to lead the Company through its next phase of growth.
“We are very excited to partner with Brightstar, who will provide us with growth capital to continue leveraging our industry-leading execution track record and rigorous safety standards to serve our customers as they build the next generation of wireless and wireline communications systems,” said Mr. Hisey. “Brightstar’s team has deep experience and long-term relationships within the telecommunications industry as well as a history of creating value in closely-held, private companies which will be instrumental as we continue to meet the growing needs of our customers and expand our geographic footprint.”
“Scott and the entire QualTek team have established long-standing relationships with blue-chip telecommunications companies that are increasingly demanding their high-quality turnkey solutions,” said Andrew Weinberg, Brightstar’s Founder and Managing Partner. “We look forward to supporting Scott and his team as they continue executing on their growth initiatives. We were drawn to QualTek’s entrepreneurial management team and the opportunity to provide our industrial services expertise and relationships and other strategic, operational and financial resources to its platform.”
“Advances in technology have driven a massive demand for faster and more reliable wireless and wirelinecommunication networks and QualTek is a leader in serving this dynamic segment of the market,” said Matthew Allard, Brightstar Managing Director. “QualTek’s passionate management team combined with our operational experience and relationship network makes for a tremendous partnership.”
Financing for the transaction is being arranged by Fifth Third and PNC. Jefferies and Stifel are serving as financial advisors to Brightstar and Winston & Strawn LLP as legal advisor. Blank Rome LLP is serving as legal advisor to QualTek and Fox Rothschild LLP as legal counsel to the Company’s management team.
About Brightstar Capital Partners
Brightstar Capital Partners is a private equity firm focused on investing in closely-held companies. Brightstar seeks partnership opportunities with exceptional management teams where it is uniquely positioned to drive value creation. Brightstar seeks control investments and employs an operationally intensive approach to investing that leverages its extensive experience and relationship network. For more information please click here.
Based in King of Prussia, PA, QualTek is a leading provider of turnkey solutions, including engineering, installation, fulfillment and program management, to the North American telecommunications and power sectors. The company provides end-to-end infrastructure services solutions to the wireline (NX Utilities), wireless (Empire Telecom and Velocitel), and residential and commercial fulfillment (QualSat and ACI) segments of the market. With experienced management, qualified field technicians, state-of-the-art data management systems and a dedicated network of contractors, QualTek is a premier partner to some of the largest leading companies in the telecommunications and power industries. For more information please click here.