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Private Equity Firm Buys Solution Provider To Capitalize On Telco Infrastructure Upgrades

Jimmy Sheridan

Looking to capitalize on infrastructure upgrades in the cable industry, private equity company Soaring Pine Capital said Friday that it has acquired Chicago-based cable installation services provider Technology Solutions Inc.

After the acquisition earlier this month, Technology Solutions was rolled up into a holding company, Tikoo Solutions.

"The cable industry is undergoing dramatic changes," said Jerry McCoy, CEO of Tikoo, in a statement released by Birmingham, Mich.-based Soaring Pine.

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McCoy said the acquisition will help Technology Solutions grab a bigger part of what he sees as a major opportunity in the cable market.

"Cable operators [are] projected to spend billions in the next five years on infrastructure upgrades," he said, "relying more heavily on third-party field services, which provides a great opportunity for growth for companies like Technology Solutions."

In a statement from Soaring Pine, the company said that Tikoo will continue working with Technology Solutions' management in order to expand the company into new geographies. Technology Solutions currently has business in 12 states.

Technology Solutions founder John Urso became a co-owner of Tikoo Solutions after the closing of the deal. He shares ownership with Tikoo's management team and Soaring Pine Capital Growth Fund I.

McCoy and cable and wireless industry veteran William Fenton now serve as the new entity's CEO and chief operating officer, respectively.

Soaring Pine funded the acquisition with a combination of equity, mezzanine and senior debt. Further financial details about the deal were not disclosed.

This acquisition is the latest in a string of private equity acquisitions of solution providers, including the acquisition of Hewlett Packard Enterprise's majority stake in India-based Mphasis by private equity behemoth Blackstone Group last month and a record number of similar deals in 2015.

According to a statement released by Soaring Pine, Technology Solutions will join modular housing provider Vesta Housing Solutions and IT consulting firm Vixta Solutions as one of Soaring Pine parent company Simon Group Holdings' investments in "high-caliber management teams."

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