Pamlico acquires ATX Networks from Trivest

The mid-market firm has made its first platform acquisition since spinning out of Wells Fargo in March, says partner Art Roselle.

Pamlico Capital, the mid-market spinoff of Wells Fargo, has acquired a majority stake in radio frequency equipment company ATX Networks from Trivest Partners.

Terms of the deal were not disclosed, but a source close to the situation valued the transaction at between $100 million and $200 million, with Pamlico investing between $50 million and $100 million.

ATX Networks provides equipment used by international cable providers for the distribution of video, internet applications and voice services.

Art Roselle

“We see the demand for that bandwidth and the advanced services that all the different cable companies are pushing out both domestically and internationally as still somewhat in the early innings,” Pamlico partner Art Roselle told PEO, “so we see the demand for this type of equipment just continuing to increase.”

Pamlico invested in ATX from its second fund, which closed on about $1.1 billion in 2007. The fund is roughly 50 percent invested, and the firm has yet to move forward with plans for its next fund.

“We’ll want to be 75 to 80 percent deployed before we start thinking about the next [fund],” Roselle told PEO.

Formerly Wachovia Capital Partners, Pamlico spun off from Wells Fargo in March. The firm makes growth equity and buyout investments of up to $100 million alongside management in three sectors: business and technology services, communications and healthcare.