M2M Connectivity Featured Article

Logix Communications, a facilities-based provider of business-focused communications services based in Texas and Oklahoma, has been acquired by Astra Capital Management.

“I am very excited about LOGIX’s next phase of growth,” said Ron Henriksen, founder and chairman of the board, LOGIX.

Matt Murphy, co-founder and partner, Astra Capital Management, a private equity firm that primarily invests in communications and technology sectors, answered some questions regarding the acquisition.

CC: Logix has focused on fiber to the Enterprise, how has the market changed and what other assets does Astra plan to use with Logix?

LOGIX originally was a long distance provider who transitioned to local phone and data services - with the addition of their own network, LOGIX has now transitioned into the fiber-rich metro provider space. We (Astra) are going to continue with the focus on fiber and grow the footprint to serve more customers, and we will also be deploying additional telecom and cloud enterprise class products.

CC: Telecom is not exactly a growth market place. What opportunities do you see on the horizon?

We do see telecom as a growth market. While there are a lot of players, the demand for more robust bandwidth solutions for enterprises is growing at a tremendous rate and isn't slowing down within the near future. We also see an ability to provide superior customer service than the large incumbent carriers. So, coupled with the right network and services, we see LOGIX poised for very strong growth going forward.

CC: Logix has been a fiber-to-enterprise company, enabling smart buildings.  Will the target market expand as result of the capital?

Yes. Our plan is to aggressively expand our fiber network and serve many large buildings throughout our markets. Additionally, we anticipate significant dedicated fiber build-outs to specific customers who want high capacity services.

CC: Texas and Oklahoma are vast markets, but low draw in terms of population density. Compared to coastal urban locations, how does the geography affect network costs?

Our TX and OK markets are very attractive for network construction. Given the high density of large multi-tenant businesses, significant underground ducts in the cities and efficient aerial construction in the less urban markets, we are very excited to deploy significant capital for more network build out.

CC: Is Astra looking to make more acquisitions? What made Logix the right choice?

Astra is actively looking to make additional acquisitions in the telecom and business services sectors. Our team brings decades of experience to bear to help management teams prudently grow their businesses. LOGIX is a uniquely attractive opportunity with a company that has great people and assets in high growth markets - our partnership with the company will be focused on accelerating the growth they have already demonstrated.