The news comes as HC2 recently rebranded its telecom subsidiary PTGi-ICS has changed its name from Arbinet Corporation to ICS Group Holdings. Since the name change the firm said that its target acquisitions will be small to medium opportunities in the global IT space.
“Go2Tel is the first acquisition by ICS Group as we embark on the pursuit of attractive M&A opportunities,” said Craig Denson, president and chief executive officer, ICS Group Holdings Inc. “This transaction is a natural complement to our ownership of PTGi-ICS, and will help us continue to pay dividends up to our parent company.”
The undisclosed transaction will add teams across Colombia, Bolivia and Spain under the HC2 umbrella and aligns itself with the company’s mission to “seek out and purchase companies that have a proven track record, a strong balance sheet and low capital expenditures,” the company said in a statement.
“ICS Group will be an efficient new vehicle for HC2 to generate value for its shareholders in the global communication and IT marketplace,” added Philip Falcone, HC2’s chairman, president and chief executive officer. “ICS Group’s first acquisition under its new name and mandate, Go2Tel, will support continued dividend contributions back to HC2.”
HC2 was formerly known as PTGI but was renamed in 2014 once the HRG Group acquired a 40.5% stake in the company. The firm has acquired a broad number of companies across a spectrum of industries including: steel, telecoms and broadcasting.
ICS has said that it will finance the purchase with cash and the deal is expected to close in Q4 of 2018.
