Portfolio Companies
Portfolio Highlights
Completel
Completel Europe is a facilities-based provider of switched local access telecommunications and Internet services based in Paris, France. Organized in response to deregulation of the European telecommunications industry, Completel today operates a nationwide fiber optic and DSL-based network in France.
Meritage led a comprehensive financial and operational restructuring of Completel in 2002 and became the company’s largest shareholder. Our Operating Partner Jim Allen led an aggressive network expansion initiative that increased Completel’s network footprint from nine to 110 markets, creating a wholesale revenue opportunity to complement Completel’s retail service offering and greatly enhancing the company’s strategic value.
Completel was acquired by Altice B2B France in September 2007 in a transaction that valued the company at approximately $1.1 billion.
Crisp Wireless
Crisp Wireless provides mobile content management and monetization solutions to major media companies and their brands, including leaders in the print, magazine, broadcasting, internet and film verticals, enabling these customers to deliver rich media content over wireless networks for revenue generation, brand promotion and customer loyalty. Mobile websites operated by Crisp on behalf of its customers represent the largest content delivery network in North America, generating more than 200 million page views per month and serving over 30 million unique visitors per month, and Crisp’s platform enables advertisers to reach this audience with rich-media advertising.
We identified Crisp as a leader in its space and quickly formulated an execution path into high-value advertising and data analytics revenue streams — both crucial elements to the company’s success. As Crisp’s first institutional investor, we have taken a lead role in its strategic direction and capital formation activities.
Pipeline Financial Group
Pipeline Financial Group provides electronic securities trading solutions to large institutions such as mutual funds, broker-dealers and hedge funds. Pipeline operates a large-block electronic securities trading system that is supplemented with its proprietary Algorithm Switching Engine, a trading tool based on predictive technology that enables institutions to intelligently access liquidity through smaller trades in multiple trading venues. Pipeline’s trading solutions minimize the market impact of trades (estimated to result in over $20 billion in “hidden” costs to institutions each year) and counteract the effects of high-frequency trading and other predatory trading practices prevalent in traditional trading venues.
As the lead investor in Pipeline, Meritage was instrumental in creating the company’s financial structure and led its equity syndication efforts. Our Operating Partner Doug Holladay’s strong operational skills provide an excellent complement to management’s expertise in finance and trading technology. Pipeline turned net income positive in less than two years after the launch of its trading network, and today trades an average of over 20 million shares per day.
IP Commerce
IP Commerce has developed a revolutionary IP-based web services platform that enables the delivery of electronic payment services through desktop computer software at the retail point of sale. Using the IPC platform, credit card companies, payment processors and independent software vendors can collaborate to create innovative commerce solutions for retailers and other business customers. IPC has established strategic relationships with leading firms in the electronic payments space, and has demonstrated its ability to implement commerce solutions faster and more efficiently than any other platform in the market today.
Meritage is the lead institutional investor in IPC and our Operating Partner David Solomon has been intimately involved in the formulation of the company’s business strategies and the development of strategic alliances with key constituents in the electronic payments ecosystem.
NewPath Networks
NewPath Networks is a wireless infrastructure company that designs, develops and operates distributed antenna system (DAS) networks for wireless carriers. DAS networks are utilized by wireless carriers to improve signal strength and network capacity in areas where conventional communications towers are impractical due to zoning restrictions or challenging topography. DAS is particularly effective in high-density population areas where tower construction is impracticable, and NewPath is currently engaged in a major network construction project in Scottsdale, Arizona.
NewPath currently has long-term contracts with leading wireless carriers representing approximately 900 network node licenses and over $90 million of contract value. NewPath expects to turn EBITDA positive in 2010 as it builds out its substantial backlog of committed revenue. Our Operating Partner Jim Dovey brings a wealth of experience in network management to the NewPath board of directors.