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TAMPA BAY FINANCIAL INC.
Sarasota firm acquires interest in Texas venture
posted 10/19/00
By Eileen Kelley
Sarasota Herald Tribune
STAFF WRITER
A Sarasota venture capital firm, Tampa Bay Financial Inc., has taken over a controlling interest of an Austin, Texas, radio communications company.
Tampa Bay Financial has already pumped $1 million into the venture, American Communications Enterprises, which will leave the radio communications business and venture into the video, data, wireless and voice communications industry through future acquisitions.
Since the controlling interest of American Communications Enterprises was acquired late last week, over-the-counter stock trading has soared for the company.
By the close of the day Thursday, American Communications Enterprises' stock prices increased 53 percent after it announced that morning that there would be a 4-to-1 split in its stock beginning Oct. 30.
About 2 million shares traded hands Thursday. The stock closed at 40 cents, up 14 cents.
American Communications Enterprises is expected to be a Sarasota company for only a short period as Tampa Bay Financial completes two more mergers with major telecommunications companies.
Carl Smith Jr., director of new businesses for Tampa Bay Financial, would not name the two companies on Thursday, but he said, "They have revenues in the millions."
The acquisitions should be completed in the next few weeks, he said. Officials touted the split as an important step in the company's business model that will put it in a key position with pending mergers and acquisitions.
In connection with the transaction, American Communications Enterprises' chief executive officer and chief marketing officer have resigned and have been replaced in the interim by Tampa Bay Financial Chairman and CEO Carl Smith Sr. and Chief Financial Officer Matthew Veal.
Steve Wagoner, director of corporate development for Tampa Bay Financial, said the group intends to invest at least another $9 million in the new venture.
American Communications Enterprises had hoped to purchase radio stations in its early days but never did, officials said. "They failed in their business plan," Carl Smith Jr. said. Wagoner said the company hopes to take the telecommunications company to an international level. "It's a very competitive market," he said.
The principals of this 11-year-old Sarasota capital group provided the venture capital for the emerging Sarasota company DNAPrint genomics. |
