September, 2006 Hevesi says pension fund investment helps technology firm increase revenue, jobs
$1.5 Million Investment through DeltaPoint Capital Helps IPLogic to Expand in Amherst
An upstate technology firm projects a 21 percent increase in 2006 revenue over last year and has added six new jobs in Amherst with plans to add even more as the result of a merger between IPLogic and TR Communications made possible by a $2.5 million investment by the New York State Common Retirement Fund and DeltaPoint Capital Management LLC, State Comptroller Alan G. Hevesi announced today.
Speaking at an open house at the Amherst offices of IPLogic on Commerce Drive, Hevesi, IPLogic President Ken Yanneck and DeltaPoint Capital Managing Director David Waterman noted that at the time of the merger in January, TR Communications employed 50 people at its Amherst headquarters. Since then, the combined companies have retained all 50 jobs and have added six more with the expectation of creating additional jobs in the future. Hevesi pointed to the company’s success this past year as a perfect example of the Pension Fund’s in-state investment program accomplishing its mission.
The $2.5 million investment earlier this year, of which $1.23 million came from the state pension fund, enabled IPLogic to finance a merger with TR Communications, an Amherst firm with operations in Rochester and Syracuse. IPLogic, which now has operations across upstate New York, builds telephone systems, network security and wireless network systems and newer networking technologies commonly referred to as converged technology. It is one of the fastest-growing computer networking companies in the state. It has been named one of the fastest growing local companies by the Buffalo Fast 50 and Buffalo’s local ranking of the fastest growing local companies published by Buffalo Business First.
The Pension Fund’s In-State Private Equity Investment Program provides capital to New York State businesses while providing market rate returns to the Pension Fund. Since its inception in 1999, the program has invested $183 million in 76 companies statewide. That commitment helped attract capital from other investors. That means the retirement fund’s $183 million investment helped leverage a total investment of $1.1 billion.
"The retirement fund’s investment in IPLogic is an excellent example of our in-state investment program at its best," Hevesi said. "Our commitment to IPLogic through DeltaPoint Capital is resulting in increased revenues and growth for the company, and we expect a strong return for the Pension Fund."
"This state investment in IPLogic illustrates the type of public-private partnership that benefits Western New York and the entire state," said Senator Mary Lou Rath (R-C, Williamsville). "Not only does it show that many forward-thinking companies are growing here in Western New York, but that our workforce is among the world’s best. I commend Comptroller Hevesi for recognizing the importance of continuing to invest in technology companies in upstate New York."
"I applaud Comptroller Hevesi for using the In-State Investment Program, which he has managed so well, to make an investment in a Western New York company. I am confident that this investment will help IPLogic to continue its growth trend, providing more jobs and returned investment in our community," said Assemblyman Sam Hoyt (D-Buffalo, Green Island).
"Today’s announcement is great news for Amherst and the entire Western New York region. Investing state pension dollars right here in our community to help IPLogic grow jobs is a smart move for taxpayers that will ultimately pay dividends for years to come,” said Assemblyman Jim Hayes (R-Amherst).
"As a result of New York State’s investment in IPLogic through its management partner, DeltaPoint Capital, IPLogic has been able to expand its very successful customer focused business model throughout all of upstate, New York. Our continued growth throughout this year of significant change is an indication that acquiring TR Communications and expanding our company was the right thing to do for everyone; employees, customers and investors," said Ken Yanneck, President of IPLogic.
"IPLogic is a perfect example of the type of business that DeltaPoint seeks for its investment. It’s well-managed, profitable and growing – and it’s located in New York. That combination will allow IPLogic to continues its growth in revenues, employment and value to its shareholders, including DeltaPoint and the New York State Common Retirement Fund," said David Waterman, Managing Director of DeltaPoint Capital Management, LLC.
The Pension Fund’s In-State Investment Program is designed to help small businesses in New York obtain the capital needed to help them grow. The program has committed $450 million of pension fund dollars to 15 private equity partners around New York State, including DeltaPoint Capital. DeltaPoint Capital targeted IPLogic as an investment opportunity, and the past year has proved it to be a strong investment. IPLogic has won number of prestigious awards this year such as:
* Ranked No. 416 on the VAR 500, a listing of the top 500 Information Technology solutions providers in the nation
* Ranked No. 35 on the Computer Reseller News’ list of the fastest growing information technology solutions providers in the nation
* Ranked No. 4 on the Buffalo Fast 50, Buffalo’s local ranking of the fastest growing local companies
About 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 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. For more information, visit
www.IPLogic.com.
About DeltaPoint Capital
DeltaPoint Capital III is the third pool of private equity capital managed by DeltaPoint Capital Management, LLC, which targets investments 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 upstate New York companies and are actively managing six of these prior investments. For more information, visit
www.deltapointcapital.com.