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Platinum Equity Acquires Startec Global Communications

BEVERLY HILLS, Calif.--(BUSINESS WIRE)--Platinum Equity announced today that it has acquired Startec Global Communications, a facilities-based provider of long distance communications services to ethnic businesses and consumers in the United States and Canada, from Allied Capital Corporation. Terms of the transaction were not disclosed.

Startec will be integrated into Platinum’s family of telecommunications companies, which includes Americatel and Matrix Telecom. Americatel President Tomas Perez has been appointed as CEO and President of Startec, while continuing in his role at Americatel.

“There is a very natural fit between Americatel and Startec,” Mr. Perez said. “These are two very similar businesses that provide vital connections between ethnic customers in the United States and their home-country communities around the world.”

Startec provides international long-distance services in the United States and Canada to customers in ethnic immigrant communities, primarily from India, the Philippines and Eastern Europe. Americatel provides similar services to U.S. customers in ethnic communities primarily from Latin America.

Startec serves approximately 400,000 customers in the United States and Canada. The company provides a comprehensive platform of long distance and international communications services, including voice connectivity through a flexible gateway of owned and leased facilities including an extensive network of IP gateways, international gateways and domestic TDM and IP switches. The company differentiates itself through in-language direct marketing and customer service, resulting in below-market customer acquisition costs and strong customer loyalty.

Mr. Perez is an experienced telecommunications executive with more than 15 years experience in senior leadership positions at Americatel, Verizon and other companies. He received a Master’s degree in international accounting and finance from the London School of Economics at the University of London, and a Bachelor’s degree in Economics from the Pontifica Universidad Catolica Madre y Maestra in the Dominican Republic.

About Platinum Equity

Platinum Equity (www.platinumequity.com) is a global M&A&O® firm specializing in the merger, acquisition and operation of companies that provide services and solutions to customers in a broad range of business markets, including information technology, telecommunications, logistics, manufacturing, and entertainment distribution. Since its founding in 1995 by Tom Gores, Platinum Equity has completed more than 70 acquisitions with more than $16 billion in aggregate annual revenue at the time of acquisition.

About Startec Global Communications

Startec (www.startec.com) provides innovative, affordable, convenient and easy-to-use telephone, Internet and communications services. Since 1989, Startec has been the leading provider of telephone services to ethnic businesses and consumers in the United States. The company also works with international long-distance carriers and Internet service providers transacting with the world's emerging economies. We offer high levels of satisfaction to every customer by understanding their needs and culture, providing exceptional value and delivering reliable communication services. Startec's newest service, CellConnect allows customers to make international calls from their cell phone as well as from almost any other phone without dialing any PIN Numbers.