The Gores Group and Global Tel*Link Announce Acquisition of Verizon Business’ Department of Corrections Division
November 13, 2006
Los Angeles, CA, NOVEMBER 13, 2006 - The Gores Group, a leading private investment and management firm, announced today that its affiliate Global Tel*Link Corp. has signed an agreement with Verizon Business to acquire the former MCI's division serving corrections facilities.
The former MCI corrections division provides managed telecommunications services to state and county departments of correction, including customer service, call equipment management, billing and IT capabilities. These services enable inmates to communicate with friends, family members, legal counsel and other approved parties outside the correctional facilities. The division provides services to 11 states and some county agencies.
Verizon sold its corrections business in 2005.
"Combining GTL with the Verizon Business corrections division provides a great opportunity for GTL. This transaction furthers our goal of becoming the undisputed leader in the inmate telecommunications field," said Brian Oliver, Chief Executive Officer of GTL. "It also provides our customers with the best customer service in the corrections industry. The combined entity will enjoy the benefits of having the best people, processes, technology and resources available in the field."
Mr. Oliver added, "This is a significant acquisition for Global Tel*Link. It is a great opportunity for us to broaden our customer base by increasing our footprint in the state department of corrections market."
"Verizon Business is divesting this division in order to provide greater focus on other areas within the state and local government marketplace," said Alex Coleman, group president for Verizon Business' government and education organization. "This transaction is a good fit for Global Tel*Link and our customers can expect a smooth transition."
"The Verizon Business corrections division is a great addition to an already expanding company. It clearly positions GTL as the industry leader," said Steve Yager, President of Mergers & Acquisitions for The Gores Group.
The acquisition is expected to close in the second quarter of 2007. Terms of the transaction were not disclosed.
About Verizon Business
Verizon Business, a unit of Verizon Communications (NYSE: VZ), is a leading provider of advanced communications and information technology (IT) solutions to large business and government customers worldwide. Combining unsurpassed global network reach with advanced technology and professional service capabilities, Verizon Business delivers innovative and seamless business solutions to customers around the world. For more information, please visitwww.verizonbusiness.com.
About Global Tel*Link
Global Tel*Link Corporation ("GTL"), based in Mobile, AL, entered the telecommunications market in the late 1980's with the introduction of an advanced "smart" store and forward public payphone system. With the success of this public payphone system in several states across the country, GTL applied the technology to inmate telephone systems. GTL's unique product provides correctional facilities a convenient and secure phone system which requires less administrative supervision while decreasing inmate phone-use fraud. Over 50% of all Departments of Correction inmates in the United States communicate through GTL's LazerPhone systems, as well as hundreds of County prisons and jails throughout the country. For more information, please visitwww.globaltellink.com.
About The Gores Group, LLC
Founded in 1987, The Gores Group is a private equity firm focused on acquiring controlling interests in mature and growing businesses which can benefit from the firm's operating experience and flexible capital base. The firm combines the operational expertise and detailed due diligence capabilities of a strategic buyer with the seasoned M&A team of a traditional financial buyer. The Gores Group has become a leading investor, primarily in the technology and telecommunications sectors, having demonstrated over time a reliable track record of creating substantial value in its portfolio companies alongside management. Headquartered in Los Angeles, California, The Gores Group maintains offices in Boulder, Colorado and London. For more information, please visit www.gores.com.
For additional information, please contact:
The Gores Group, LLC
Sitrick And Company