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November 17, 2008

Global Capacity Contracts to Acquire Vanco Direct USA, LLC



Global Capacity, a company offering a fully-integrated telecommunications supply chain management system, has reportedly initiated an agreement to acquire Vanco Direct USA, LLC (VDUL). Financial terms are yet to be finalized.
 
The consolidated predictable revenues are expected to be $70 million per annum through this acquisition.
 
Founded in 2005, Oak Brook-based Vanco (News - Alert) Direct USA is a network service provider specializing in network design and management, project implementation, service management, and electronic trading and performance management. Through its data, converged, and security services, as well as remote access solutions, the company helps its clients to access wide area network technologies.
 
Global Capacity initiated an agreement with VDUL in order to expand its leadership position as the first global telecom logistics provider. VDUL’s software and intellectual property assets are complementary to Global Capacity’s unique global pricing and supply chain management systems. The merge will also further strengthen the company’s intellectual property which forms the core of its logistics business model.
 
As soon as the Federal regulatory approval is cleared, Global Capacity is expecting to close the financial deal, likely in the next 7 to 10 days, and will be follow with a 120-day transition period to incorporate the new acquisition into its current operations.
 
“Global Capacity is redefining the market and helping customers to streamline and effectively manage their global networks. We see this as an opportunity to work with a pioneer in the industry and incorporating our service offerings will significantly contribute to Global Capacity’s ongoing growth and success,” said, Chris Conant, chief operating officer of VDUL.
 
Global Capacity helps its customers to manage the complexity of the global access network market. The company’s systems, tools and capabilities allow customers to navigate the entire supply chain of global access networks, from pricing and procurement to management and optimization.
 
The company believes that VDUL’s base of recurring revenue customers fits perfectly into Global Capacity’s Strategic Sourcing business, while the customers and revenue from its software business will bolster Global Capacity’s high-value Software as a Service (SAAS) business.
 
 “Global Capacity operates in a highly-fragmented, $200 billion global access network market where poor profit performance and margin pressure are forcing companies to identify new ways to control costs,” says Patrick Shutt, chief executive officer at Global Capacity.
 
“This acquisition strengthens our customer base, our product portfolio, and our financial performance, and we are very pleased to welcome Vanco Direct USA’s employees and customers to the Global Capacity family,” added Shutt.
 
The combined businesses will remain headquartered in Chicago, IL and will operate under the Global Capacity brand. Capstone (News - Alert) Investments is acting as the placement agent for the financing related to the acquisition.

Jai C.S. is a contributing editor for TMCnet. To read more of Jai's articles, please visit his columnist page.

Edited by Stefania Viscusi


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