The Clover Telecom management team has partnered with Linx Partners to purchase the company from its parent company Clover Technologies Group. The announcement was made by BG Strategic Advisors (“BGSA”) who advised Clover Technology Group on the sale. Financial terms of the transaction were not disclosed.
Clover Telecom is a leading global supplier of telecom hardware and engineering services for data, wireless, cable, and wireline networks and offers an extensive inventory of new, surplus, and pre-owned telecommunication networking equipment in the industry. The Company’s core services include equipment distribution; equipment testing and repair; out of warranty technical support; and field services.
In the March BGSA announcement Jim Cerkleski, Chairman of Clover Technologies Group said “This sale will enable us to fully focus our energies on the growth opportunities for Clover Imaging and Clover Wireless and provide us with additional resources to invest in those businesses. Our core Imaging and Wireless businesses each have strong market positions and established global manufacturing, repair and distribution footprints, which we will work to further build out as we continue our mission of supporting our customers and their new business strategies. We wish Gordon and the Clover Telecom team well in their next chapter.”
Gordon Smith, President of Clover Telecom, said of the deal “We couldn’t be more excited about the fit we have found with Linx Partners. Our two groups are aligned in our vision for growing our customer base, geographic presence, and technical capabilities.”
Rumours of a sale have been going the rounds since November 2017 when The Recycler reported on the Moody’s downgrade on 4L Technologies, Clover Technology Group’s parent company. At the time 4L Technologies was said to have a debt of circa $700million with a revolving credit facility due for renewal in 2019 and a secured loan due in 2020 and $66 million (€55.92 million) of cash in the bank. According to BGSA, the telecom business represents less than five percent of Clover Technologies’ 2017 revenues.
