(Press Release) Northgate Capital, the global private equity fund manager, has acquired a majority stake in Elara Comunicaciones, S.A.P.I. de C.V. through a transaction in which Northgate will invest up to US$38 million in both primary and secondary transactions.
Elara is the leading teleport telecommunications company in Mexico and Latin America providing its clients mission critical satellite connectivity. The Company’s solutions allow its clients to send and receive voice, bulk data, and provides Wi-Fi and cellular connectivity through satellite access in regions where traditional terrestrial telecommunications is neither accessible nor feasible. The Company’s target segments include fixed line and mobile carriers, government and diverse industries such as the oil & gas industry.
Northgate’s investment in the company will be used to further develop Elara’s product portfolio and execute its expansion plan. Several initiatives are currently underway to grow the firms’ operations in Mexico and in Latin America.
“The creation of this partnership is exciting as Elara continues on its path of aggressive growth,” said Jorge Villarreal, founder and Chief Executive Officer of Elara. “We are excited to work closely with Northgate Capital to drive our market leading position in providing connectivity in our target sectors. With Northgate’s support, we will further expand our product offerings and geographic coverage with the highest service level in the industry.”
“Mexico and Latin America are in the need of increased connectivity solutions both on the public and private sectors. The increased need for connectivity services, coupled with innovative cost-effective satellite technologies, makes the current market conditions very attractive to continue expanding Elara’s business offering. We are enthusiastic about this partnership with Elara and look forward to developing a successful and socially responsible story in the following years” said Gabriel Mizrahi, Principal at Northgate Capital Mexico.
“We are eager to provide Elara with the resources and backing to accelerate its growth in the satellite communications industry,” said Alejandro Medina, an Investment Manager at Northgate Capital. “Elara´s high value-add position in the market, together with its leading presence in the government, carrier and energy segments, sets the Company for significant expansion. We look forward to continuing to work with Jorge and his team to create meaningful value for Elara’s customers.”