Silver Lake to buy IPC for $800m

Private equity firm Silver Lake Partners has entered into an agreement with corporate private equity seller GS Capital Partners to acquire communications company IPC Information Systems for approximately $800m.

Goldman Sachs’ corporate equity group and Silver Lake Partners have signed a deal for Silver Lake to buy IPC Information Systems, a New York-based global communications firm, for $800 million (€623 million).

Goldman served as IPC’s advisor for the transaction, while JP Morgan and Morgan Stanley advised Silver Lake. The deal is expected to close next month.

IPC is best known for providing communications for the finance industry, particularly for the trading floor, and the company pioneered the use of cutting-edge voice-over-internet-protocol (VoIP) communication in that arena. It also supplies communications technology to government, public safety, energy and transportation organizations worldwide.

The investment could also provide synergy among certain of Silver Lakes’ portfolio companies. Silver Lake and its affiliates invested $145 million in the financial trading market NASDAQ last year, and the private equity firm has representatives on NASDAQ’s board.

Silver Lake became the first large-scale private equity investor in the technology sector in 1999, and it currently manages a $3.6 billion fund.