Behrman Wires Into Cabling Market –

Behrman Capital this month acquired ACS Communications Inc. of Austin, Texas, in a deal valued at around $50 million. The transaction consisted of senior debt from Chase Securities, subordinated debt from BankAmerica, and equity commitments from Behrman Capital and ACS management.

The firm will look to use ACS as a platform. “This market is very fragmented and we hope to grow through consolidation as well as internal growth,” said Darryl Behrman, a managing partner at Behrman Capital.

ACS, which operates under the name ACS Dataline, provides outsourced communications systems integration services to the information technology industry. The company specializes in services associated with structured cabling infrastructures, and its base of more than 1,000 clients places it among the largest companies in the industry.

Looking to Expand Geographically

Currently a regional player with operations located throughout Texas, as well as in Phoenix, Ariz., and Irvine, Calif., the company intends to expand operations to a national level following the private equity backing. Mr. Behrman said plans call for expansion to proceed by region, although no map has been laid out as yet. In response to the severe fragmentation of the structured cabling market, he said ACS would prefer to acquire large rather than small operators.

Nearly half of the company’s annual revenue is derived from new facility construction, with the remaining revenue coming primarily from service contracts and material sales.

“[ACS] fits in the IT and outsourcing segments of our business, so we can go forward offering them operating knowledge on both sides of the equation,” Mr. Behrman said.

Merrill Lynch & Co. advised ACS on the transaction.