Golden Gate Capital has completed its $137 million public-to-private buyout of Tollgrade Communications (NASDAQ: TLGD). The firm paid Tollgrade shareholders $10.10 in cash per common share. Tollgrade provides network assurance solutions for the telecommunications and utilities industries.
Since the beginning of 2009, PE investors have completed 82 deals in 78 companies primarily engaged in the Communications & Networking industry, according to the PitchBook Platform. Deal activity in the industry has held relatively steady in the last couple of years with 34 completed deals in 2009 and 36 in 2010. 2011 appears to be carrying on at a similar pace with 12 deals completed so far. What does seem to be changing, though, is the size of those investments. The median deal size jumped from $62 million in 2009 to $113 million in 2010, and it appears to be continuing on that upward trend, albeit less dramatically, in 2011 at $129 million. As PE investors look to invest the billions of dollars of dry powder sitting in their funds, this is a trend that could very well have some staying power.