TelePacific establishes Texas market presence via Tel West acquisition

TelePacific is once again going to the acquisition well again to bolster its presence in the Texas market by acquiring Tel West.

Similar to TelePacific, Austin, Texas-based Tel West is a regional service provider that currently provides telecom services to 3,400 small to various Texas-based medium sized businesses (SMBs), enterprises and government agencies.

The Tel West deal comes not long after TelePacific announced a deal to acquire Telekenex, a CLEC that comes complete with a nationwide PCI compliant MPLS/OC-192 backbone, cloud-based security services, managed network services and a hosted PBX platform. When TelePacific completes its acquisition of Tel West it will supply Telekenex's capabilities to Tel West via its new managed services channel.

Similar to other deals TelePacific has made over the past year, the newly combined company will retain its headquarters in Los Angeles, but will continue to operate under the Tel West name with current president Jeff Swickard leading the unit.

Up until now, TelePacific primarily concentrated on serving the California and Nevada markets, an effort that it has built organically and through various acquisitions to challenge large incumbents like AT&T (NYSE: T), CenturyLink (NYSE: CTL) and Verizon (NYSE: VZ).

By acquiring Tel West, TelePacific instantly establishes a foothold in a market that its two main shareholders Investcorp and Clarity Partners identified as an attractive growth target due to projected "20 percent population growth and 15 percent business growth over the past 10 years."

"TelePacific currently serves deep and dense population centers in California and Nevada and with the addition of Texas will cover approximately 20 percent of the small and medium businesses in the U.S.," said Lars Haegg, Managing Director at Investcorp and Clint Walker General Partner at Clarity Partners in a joint statement.

From a wider CLEC trend perspective, TelePacific's move to acquire Tel West represents the need for competitive service providers to ward off growing competitive threats from hungry cable operators by scaling their respective service and geographic footprints.  

For more:
- see the release

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