Nortel appears to be raising cash to buy that Swiss plant from JDSU.
Williams Communications to Strengthen Focus on
Core Broadband
Business
Platinum Equity Signs Definitive Agreement to Acquire Williams
Communications
Solutions Unit
TULSA, Okla., Jan. 29 /PRNewswire/ -- In a move to strengthen focus on the
rapidly growing broadband market, Williams Communications, LLC (NYSE:
WCG) has signed a contract with Platinum Equity to sell its Houston-based
enterprise services business unit, Williams Communications Solutions
(Solutions).
Solutions is a leading provider of fully integrated enterprise communications
services to businesses throughout North America. Platinum Equity is a Los
Angeles-based, private equity firm specializing in acquiring and operating
mission-critical technology organizations and technology-enabled service
companies worldwide.
Under the terms of the agreement, Platinum Equity will acquire Williams
Communications Solutions' United States and Mexico operations, which offer
a full range of enterprise voice and data solutions. Plans for operations in
Canada will be announced at a later date. Solutions 2000 revenues are
expected to be in excess of $1.3 billion.
According to Howard Janzen, president and chief executive officer of Williams
Communications, the sale of this business unit will allow Williams
Communications to fully leverage its newly completed 33,000-mile next
generation network -- the largest in North America -- and focus growth
opportunities on its core broadband network businesses.
"Williams Communications continually examines opportunities to realign its
business to improve shareholder value," Janzen said. "Our decision was
prompted by a need to meet the growing demand for broadband network
services."
"The acquisition of Williams Communications Solutions provides an
opportunity for both organizations to pursue strategic initiatives and builds on
our strategy of continuing to expand our presence in the rapidly evolving
communications space. We warmly welcome the entire Williams
Communications Solutions organization," said Tom T. Gores, chairman and
CEO Platinum Equity.
Platinum Equity will integrate Williams Communications Solutions and Milgo
Solutions, an international voice and data solutions and services provider in the
consulting, design, provisioning, deployment, management and support of
mission-critical wide-area networks. The integration of the two companies will
create an organization with a strong competitive position in converged voice
and data enterprise solutions.
"By joining Platinum Equity, Solutions will find an environment that offers
renewed focus on enterprise services. The power of our workforce is what
made us an industry leader, and Platinum's plan to integrate Solutions and
Milgo complements our existing strategy to expand our data and convergence
capabilities," said Patti Schmigle, president of Williams Communications
Solutions.
Gores commented, "The success of our portfolio company, Milgo Solutions,
has given us great insight into the opportunities in this space. We recognize
Williams Communications Solutions as an organization with a breadth of
expertise, quality of service and understanding of leading vendor solutions that
is unsurpassed in the communications market space -- we're excited to begin
the work to create the next level of value for Solutions."
The new company will have extended capabilities and geographic reach,
enabling it to provide unified services and solutions to major enterprise
customers, service providers and manufacturers throughout the world. Milgo
and Williams Communications Solutions will operate as a combined entity,
under a new name to be announced within the next 30-45 days.
Transition teams will ensure Solutions customers receive no interruption in
service or product delivery during the transfer of ownership, which is
anticipated in about 90 days pending regulatory approval. Solutions employees
will be retained by Platinum Equity and headquarters will remain in Houston,
Texas. Nortel (NYSE: NT), which owns a minority stake in Solutions, has
been an active supporter in the negotiations and participant in the transaction.
Nortel's interest will be sold as part of the transaction.
Platinum Equity's executive vice president of mergers and acquisitions,
Johnny Lopez stated, "With the support of global communications leaders
such as Nortel Networks, the new organization will be at the forefront in
delivering converged voice and data solutions. This will benefit the enterprise
customer, as well as provide world class support to communication service
providers and manufacturers."
"Nortel Networks has a solid, long-standing relationship with both Milgo and
Williams Communications Solutions," said Alan Kember, President, Americas
sales & marketing, Nortel Networks. "Together, we will enable existing and
new customers to profit from the Internet revolution by transforming their
existing networks based on our industry leading IP capabilities for voice and
data. The opportunity for us to team and unleash the power of the high
performance Internet is unprecedented."
About Williams Communications Group, Inc.
Williams Communications, through its subsidiaries, is North America's only
exclusively carrier-focused fiber-optic network. Based in Tulsa, Okla., Williams
Communications is located primarily in North America, with offices in Europe
and Asia and investments in South America and Australia. Approximately 85
percent of WCG stock is held by Williams (NYSE: WMB) which, in 1985,
became the first energy company to harness its core competency as a builder
of networks to enable competition in the communications industry. Additional
information is available at www.williams.com and
www.williamscommunications.com.
About Platinum Equity
Platinum Equity (www.peh.com), based in Los Angeles, has been recognized
as one of the largest and fastest growing privately held IT companies in the
United States by both Forbes and Business Week magazines. The company
has distinguished itself as a billion-dollar investment corporation that
specializes in acquiring and operating mission-critical technology
organizations and technology-enabled service companies throughout the
world. Platinum currently owns 19 technology-driven corporations, occupies 60
office locations in 11 countries and features a workforce of 10,000 employees,
an established infrastructure in more than 100 countries and offices in Europe,
Asia and South America serving tens of thousands of customers located
throughout the world.
Portions of this document may constitute "forward-looking statements" as
defined by federal law. Although the company believes any such statements
are based on reasonable assumptions, there is no assurance that actual
outcomes will not be materially different. Any such statements are made in
reliance on the "safe harbor" protections provided under the Private Securities
Reform Act of 1995. Additional information about issues that could lead to
material changes in performance is contained in the company's annual reports
filed with the Securities and Exchange Commission.
Contact: Deborah Trevino or Cheena Pazzo Patricia Kraft
Williams Communications Williams Communications
(media) (investors)
(918) 573-4764 or (918) 573-4387 (918) 573-0649
deborah.trevino@williams.com patricia.kraft@williams.com
Alanna Chaffin
Platinum Equity
(310) 712-1850
achaffin@peh.com
SOURCE Williams Communications, LLC
-0- 01/29/2001
/CONTACT: media, Deborah Trevino, 918-573-4764, or
deborah.trevino@williams.com, or Cheena Pazzo, 918-573-4387, or investors,
Patricia Kraft, 918-573-0649, or patricia.kraft@williams.com, all of Williams
Communications, LLC; or Alanna Chaffin of Platinum Equity, 310-712-1850, or
achaffin@peh.com/
/Company News On-Call: prnewswire.com or
fax, 800-758-5804, ext. 875550/
/Web site: peh.com
williams.com
williamscommunications.com /
(WCG NT WMB)
CO: Williams Communications, LLC; Platinum Equity; Williams
Communications
Solutions; Milgo Solutions; Nortel; Williams ST: Oklahoma, Texas, California,
Ontario IN: TLS STW SU: TNM CON
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