Canadian firm to buy Oxford Networks for $50M
Telecommunications and IT services company Oxford Networks of Lewiston said Wednesday that it has agreed to be acquired by Novacap, a Montreal-based private equity firm, for $50 million.
The purchase comprises equity and debt financing, according to a proxy statement sent to Oxford Networks’ shareholders and acquired by the Bangor Daily News.
The newspaper said the 113-year-old company, which employs about 120 people, has faced financial challenges in recent years as it struggled to get capital to evolve from a traditional telephone company to a diversified telecommunications technology provider. The company reported a $2.8 million loss in 2012 after a profitable 2011.
Oxford Network’s CEO Craig Gunderson told the BDN that he could not expand on the proxy statement because the company is in a quiet period. But he did tell the newspaper that being acquired by Novacap would give Oxford the necessary resources to continue expanding its services.
Novacap, which has managed more than $1 billion since its inception in 1981, also has extensive experience in the telecommunications sector that would serve Oxford Networks well, Gunderson told the BDN.
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