November 2005
ALBANY, N.Y. - New York State Comptroller Alan Hevesi today announced that TR Communications, Buffalo's 30- year veteran of voice communications solutions, and IPLogic, a rapidly emerging network technology leader based in Albany, have merged to create a next generation communications technology firm.
The new company, which will operate with corporate headquarters in Albany and six regional offices in Buffalo, Rochester, and Syracuse, N.Y., Pittsburgh and Erie, Pa., and Morgantown, W.Va., expects to add up to 100 jobs over the next three to five years. Twenty to 30 of these jobs will be based in the Capital District. The remainder will be spread out amongst Buffalo, Rochester, Syracuse, Pittsburgh, Erie and Morgantown.
At a press conference held today in Albany, Hevesi, who was joined by Senator Bruno, IPLogic CEO Ken Yanneck and TR Communications President Kevin Kelly, described the company's emergence as a "new breed of voice, audio/visual, and data communications provider focused on delivering a truly unified communications solution."
"Companies such as IPLogic are important to New York's economic health as they are major contributors to employment growth. I am proud that the state retirement fund, through DeltaPoint Capital, is able to help IPLogic expand through its merger with TR Communications. This will not only lead to new jobs, but will also provide the Retirement Fund with strong returns," said Hevesi, "Since taking office in 2003, we have increased the Pension Fund's commitment to our New York State private equity program by more than $300 million, and increased the number of private equity partners from six to 16, enabling even more companies like IPLogic to realize their potential."
Kelly, who will serve as the company's chief marketing officer added, "This represents a phenomenal success story for TR Communications. We have built a trusted name in our markets by delivering best-in-class communications services and solutions. IPLogic adds complementary and growing technologies, as well as business development expertise. These allow us to provide our customers new solutions to help their businesses succeed."
"For many years, the technology industry has talked about the convergence of voice and data technologies. This is action," explained Yanneck. "We have made that convergence a reality for our customers. Our strategic combination brings together all aspects of business communications; voice, audio/visual and data communications under a single entity." The positive outlook on the new organization is based on the two companies' rich history of solid growth. In 2005, TR Communications posted sales of $10.4 million, a 15% increase over 2004. IPLogic revenues grew from $9 million in 2003 to $16.7 million in 2004 and to $23 million in 2005.
This rapid development has attracted significant industry attention and investment, leading to a $1.5 million investment from DeltaPoint Capital Management, LLC and the New York State Common Retirement Fund in 2005, and to today's capitalization of this merger. Hevesi is the sole trustee of the Common Retirement Fund, with $120 billion under management.
TR Communications has 70 employees throughout New York, Pennsylvania and West Virginia and services clients such as HSBC Bank, Rich Products, Seneca Niagara and Allegheny Casinos and Hotels, West Virginia University, Erie County Medical Center, SUNY at Buffalo, UPMC, the State of New York and National Fuel Gas. The Tonawanda-based firm will add 'an IPLogic Company' to its name, and advance its strategy to adopt the IPLogic brand near the end of 2006. "As we build our company in existing markets and beyond, we'll certainly need to expand our team," said Yanneck, whose staff of 45 service clients such as the State of New York, Albany Medical Center, Community Care Physicians, P.C. and Union College. "We'll be looking to recruit the very best and brightest IT professionals who have an understanding of the complex, specialized work that we do."
Commented David Waterman, managing director at DeltaPoint Capital Management: "When we invest in a business, we look for strong financials, promising opportunities to take a leadership position in the organization's markets, and a management team with the vision to get there quickly," he said. "TR Communications and IPLogic have shown their ability to bring in the numbers and compete effectively. To top it all off, this management team is as good as it gets."
About the New IPLogic
Together with TR Communications, IPLogic delivers converged voice, data, and audio/visual communications solutions that increase revenue, decrease cost, and maximize organizational productivity for clients. Serving medium to large organizations across the states of New York, Vermont, Massachusetts, Pennsylvania, and West Virginia, IPLogic's expertise includes traditional PBX and converged IP telephony, audio/visual communications, network security, managed network services, network infrastructure (LAN/WAN), training and staff augmentation solutions. We empower clients to Connect, Communicate, and Compete -- Better(TM). Visit us today at www.IPLogic.com or www.trcommunications.net.
About DeltaPoint Capital Management, LLC
DeltaPoint Capital III is the third pool of private equity capital managed by DeltaPoint Capital Management, LLC which targets investment in established, privately owned or closely held companies located in New York State. DeltaPoint Capital III plans to invest in as many as 15 businesses over the next five years. The principals of DeltaPoint Capital have been actively involved in providing investment capital to companies in New York State for the past 17 years. Through two prior capital funds and other investments, DeltaPoint's principals have invested in several Western New York companies and are actively managing four of these prior investments.
About the Common Retirement Fund
The $130 billion New York State Common Retirement Fund is an in- state private equity investment program. The fund, whose sole trustee is Hevesi, has committed $409 million to 16 managers located throughout New York State. The program provides market rate returns to the pension fund while providing capital for New York businesses.