Crains – FiberLink sells to Zayo

Local investor sells Chicago-Denver fiber network

 

October 07, 2013

 - Christoper Jensen

Christoper Jensen

 

During the depths of the telecom bust, Ken Anderson and Christopher Jensen bought an unused fiber-optic network that had been built between Chicago and Denver, betting that demand would come.

That day has arrived. Their company, Chicago-based Anderson Pacific sold the network, called Fiberlink, to Zayo Group LLC, a Denver-based bandwidth provider backed by private-equity firm GTCR.

The deal comes amid a buying spree by Zayo and others, as excess fiber-optic capacity finds plenty of customers amid the explosion of data that’s being driven by smartphones and other devices connected to the Internet. Time Warner Cable Inc. today said it’s buying DukeNet Communications Inc., a fiber network in the Carolinas, for $600 million. Last week, Zayo bought a fiber network in Minneapolis for $41 million.

Terms of Zayo’s Fiberlink acquisition were not disclosed, but it’s likely in the tens of millions. Anderson Pacific bought the 1,200-mile network, which was built for more than $100 million at the peak of the first dot-com boom in 1999-2000, out of bankruptcy for just $3 million in 2004.

But Anderson Pacific says “we bought at bottom and sold at a place where we’re happy,” Mr. Jensen says.

 - Ken Anderson

Ken Anderson

 

Demand for fiber is surging, particularly among media and technology companies that are moving video and other bandwidth-hogging amounts of data. Chicago is a major beneficiary of this trend because it lies at the center of the nation’s fiber networks, which largely follow rail lines laid down more than a century ago.

“Zayo had eyed the network for some time,” Mr. Anderson said. “It’s a unique network. There’s no other direct network from Chicago to Denver. We’re the electronic Interstate 80 between Chicago and Denver.”

That’s a good place to be these days. Google Inc., Facebook Inc. and Microsoft Corp. all have, or are building, massive data centers in Iowa.

The Fiberlink network was “dark fiber,” or unused capacity, when Anderson Pacific bought it. “At the time, it took guts,” Mr. Anderson said. “We didn’t know how long it would take.”

But companies have gradually begun using it. Two of Anderson Pacific’s investors were companies that had a need for capacity, as well.

Mr. Jensen wouldn’t say exactly how much of the fiber is in use, nor identify the customers that have leased it. The network also contains unused conduit that will dramatically lower Zayo’s costs to add capacity.

Mr. Anderson is a veteran telecom investor, who has bought and sold cellular towers, wireless spectrum, fiber-optic networks and data centers over the past 35 years. Anderson Pacific owns a data center at 725 S. Wells St. and is an investor in a new fiber-optic network being built between Atlanta and Miami. It’s also making another technology play, investing in the area of machine-to-machine networks, also called the “Internet of things.”

“We’re not done,” said Mr. Anderson, 68.

Editor’s note: The story has been updated to correct the address of Anderson Pacific’s data center.

Follow John on Twitter at @JohnPletz.

Full Article -http://www.chicagobusiness.com/article/20131007/BLOGS11/131009822/local-investor-sells-chicago-denver-fiber-network

Zayo Group buys Chicago-based FiberLink

By Beth Potter October 7, 2013

BOULDER – Zayo Group LLC bought FiberLink LLC in Chicago, the company said Monday.

Financial terms of the transaction were not disclosed.

Zayo, a Boulder-based telecommunication infrastructure company, used funds from a $250 million revolving credit facility to buy FiberLink, according to a company press release.

The FiberLink sale includes a 1,200-mile route of dark fiber-optic cable running from Chicago through Des Moines, Iowa, and Omaha, Nebraska, to Denver, Zayo said in the press release.

As computer users need more online bandwidth, the “pipes” carrying information need to get larger and wider, meaning FiberLink assets became more valuable over the years, said Christopher J. Jensen, a spokesman for FiberLink and a managing principal at Anderson Pacific Corp. in Chicago, a previous investor in the company. Jensen did not give financial details of the value of the company.

“We’ve ridden the wave of bandwidth consumption over the last 10 years,” Jensen said.

FiberLink is a virtual company that leases bandwidth, meaning that it didn’t have any employees, Jensen said. The company was formed in 2004 by three independent telephone companies and by Anderson Pacific Corp., a Chicago-based private investment firm, Jensen said.

Zayo Group now offers about 26,000 route miles of dark fiber, which is associated with technical-support services, among other things. In all, the company has operations in 45 states and in Europe. It has more than 1,000 employees working in Boulder and in other offices in Louisville and the Denver Tech Center. Founded in 2007, Zayo Group has grown through purchase of other telecom companies.

Probably the most well-known Zayo purchase was of AboveNet Inc. (NYSE:ABVT) in summer 2012 for $2.2 billion.

Full Article - http://bcbr.com/article/20131007/NEWS/131009952/-1/

Herald Times – Bloomington’s Sproutbox helps turn entrepreneurs’ ideas into companies

By Rod Spaw -

Chris Jensen is a venture capitalist by profession, the managing principal of a Chicago investment firm that specializes in telecommunications, media and software industries.

So when he began looking for a partner to develop a product idea of his own, he was surprised by one name that kept popping up in social media and in conversations about business incubators in the Midwest: Bloomington’s Sproutbox.

“I said, ‘Who are these guys and why don’t I know them?’” said Jensen, a 2004 graduate of Indiana University in Bloomington, where he earned a degree in finance.

He found out that Sproutbox is the creation of three guys who met in college and subsequently came up with an online platform for apartment leasing called Resite Information Technology, which later was purchased by a national company. Now, those same guys — Brad Wisler, Mike Trotzke and Marc Guyer — are helping other people turn their ideas into businesses, in exchange for a stake in the new companies.

In a little more than three years since its creation, Sproutbox has done 18 deals with entrepreneurs, Jensen among them. Vaultworthy, his idea for a virtual safety deposit box for secure storage of important personal documents, launched May 1. For $12.95 a month, users can store up to 50 files in their online vault, which is encrypted and accessible only to the account holder and up to five “trustees” the customer designates.

“I’m an entrepreneur. It’s in my heart,” Jensen said. “I’m not a developer. I’m not an engineer. I don’t think I could have pulled something like this off without hiring a few employees.”

Sproutbox took care of all the computer coding for Vaultworthy, turning Jensen’s vision into software. Sproutbox’s staff will provide technical and development support until Vaultworthy gets big enough to need its own dedicated staff. That’s the Sproutbox model for growing businesses, said co-founder Wisler.

“Each of the companies in our portfolio has its own budget, bank account and ability to create jobs,” he said.

Sproutbox isn’t far removed from a startup itself. It was pitched as a concept at the first Bloomington Startup Weekend in 2008 and became a company the next year. Startup weekends are held around the country as an informal way to bring together people with ideas and people with skills to create businesses. Bloomington has had three startup weekend events; a fourth is planned for this fall.

Wisler said the Sproutbox company has about 10 employees, but there may be close to 30 people working out of its offices in part of a former RCA/Thomson warehouse next to the B-Line Trail off Madison Street. Wisler said some of the extra folks are employees of its spinoff companies — or “sprouts” as they are called. A few are free-lance computer coders that are called on for support when needed.

Wisler said he and his partners try to approach business development from the prospective of the entrepreneur. He said Sproutbox’s mission is to eliminate obstacles that prevent entrepreneurs from starting businesses.

“We’re trying to create an environment to say, ‘Take that risk, and there are other people who will stand beside you,’” Wisler said. “We view ourselves as founders, and we try to act that way.”

Wisler said building a “culture of risk” is vital to creating a thriving entrepreneurial community.

“When you don’t have a risk culture, the economy is very traditional,” he said. “Everybody expects to be paid up front for the things they do. In a culture of risk, people are willing to invest more up front.”

At the same time, Wisler said, risks should be calculated. Sproutbox chooses business ideas to develop through a formal selection process that involves presenting a small group of finalists to an advisory committee of investors and partner companies. Ideas are rated on six investment criteria, and offers are made. According to the Sproutbox website, the company usually seeks 20 to 40 percent equity in new businesses. The website says Sproutbox’s goal is to launch one new company every three months.

In exchange, Sproutbox offers a range of business services, technical support and just enough cash to keep company founders on task for creating and marketing their product. The goal is to develop a new company to where it can operate profitably or attract new investment capital within a 10-month period.

“We insist you do validate the market before we get involved,” Wisler said. “It’s not just a new idea, but a pretty well baked idea.”

Sproutbox specializes in Web-based applications. Its current “sprouts” include TeamMash, a daily email for sports fan that tells them everything that happened with their favorite teams in the previous 24 hours; Cause.It, a mobile application that provides ways for businesses and charitable groups to help one another; StoryAmp, an online platform for musicians and music journalists; and CheddarGetter, an online subscription management and billing service that recently was one of 10 startup companies chosen to ring the closing bell on the New York Stock Exchange.

“Sproutbox is developing a great reputation for creating good products,” said Jensen, whose own new product rated a mention recently in a Wall Street Journal article about online document storage. “I think Sproutbox is doing it right — starting companies lean and getting them up and going.”

Full Article Link-

http://www.heraldtimesonline.com/stories/2012/06/22/business.growing-ideas-into-businesses.sto

The Wall Street Journal – Protecting Vital Documents

By ELLEN E. SCHULTZ -

When my great-uncle Creighton Cornwell was visiting his family in Nevada in 1991, his entire Oakland, Calif., neighborhood was incinerated in a wildfire. He salvaged a single teacup.

Mr. Cornwell, then 87 years old, kept a few records in a safe-deposit box, such as a marriage license, birth certificates and mortgage documents. After the fire, those records weren’t enough to get his life back in order. Mr. Cornwell, who died in 1998, lost everything else, including insurance policies, medical records and irreplaceable correspondence and photos.

Though retirees are likely to have the greatest number of critical records—and might need access to many of them on short notice—they are among the least likely Americans to be taking advantage of new tools to secure such records. If this includes you or your parents, consider these steps on how to secure your family’s financial documents:

Take inventory. First, make an inventory of all your documents, which might be scattered in file cabinets or boxes in the attic, or on old computers, new laptops, thumb drives or emails.

In one group, include crucial items such as car titles, wills, powers of attorney, life-insurance policies, medical directives, deeds, licenses, and pension and retirement-plan documents.

In another group, include items you probably will never need but might want to archive, such as old tax returns, brokerage statements and records of when you established individual retirement accounts.

This is a good time to purge old checks, mutual-fund statements, mortgages for homes you no longer own and bank, credit-card and brokerage statements.

Make copies. The most practical way to duplicate files nowadays is to scan them. It takes little more time than making photocopies, and will save you from ever needing to make or mail a copy again. If you can’t scan it yourself, ask your accountant, lawyer and financial advisers to send you scanned copies of your documents, or hire a scanning service.

You don’t need to scan or copy things like bank and credit-card statements, which are generally available online for five years. But it is critical to make a list of all such accounts, as well as email, photo-sharing and other online accounts. Include account numbers, user names and passwords.

Store electronically. Having duplicates and backups won’t do you much good if you keep them all on a desktop computer and your home burns down. Documents in safe-deposit boxes could be inaccessible after a tornado or flood, or if you are stricken with a serious illness while traveling.

That is why online storage “in the cloud”—on a remote server—is crucial. Such services work pretty much the same way.

With Dropbox, for example, you download the program, and then drag your files into the Dropbox “file” on your computer. Files are copied automatically and changes are synchronized with changes you make on your home computer, tablet, smartphone or other devices. You can access your files from anywhere in the world, and share access with trusted advisers and family members. Other cloud-storage platforms include Microsoft’s MSFT +2.65%SkyDrive, Google’s GOOG +1.06%Google Drive and Apple’s AAPL +1.01%iCloud.

Storage is free up to a specified size limit for all these sites. If you need more storage space, you can purchase upgrades for generally a few dollars a year.

Store securely. Wary of entrusting sensitive documents to a cloud-storage site? Relax. Chances are you are doing exactly the same thing already.

When you compose a Google or Yahoo email on the Web, you are creating a file on a remote server. That email you sent your accountant with your tax return attached? It is on a remote server. In the cloud.

You can enhance security by encrypting your own files before downloading, using commercial or open-source software, or by putting a password on individual PDF or Word documents.

A new option aimed at the more cautious is VaultWorthy, a cloud-based storage platform that uses 256-bit AES encryption and other security features. Users can upload as many as 50 documents to their VaultWorthy account and provide access to up to five designated “trustees.”

At $12.95 a month, it is costlier than other cloud-storage platforms, and it stores far less. VaultWorthy’s founders say it is intended to be an online safe-deposit vault, not an online garage. On the plus side, users don’t need to encrypt files separately, and it is easy to use.

That is something my great-uncle Creighton, who also survived the 1906 San Francisco earthquake and fire, would have appreciated.

Full Article –

http://online.wsj.com/article/SB10001424052702303395604577434631749900836.html?mod=WSJ_PersonalFinance_PF14#articleTabs%3Darticle

Naples Daily News – Naples entrepreneur out to get a lock on web-based document storage, security

By Scott Clair -

NAPLES — All successful businesses have the same beginning: a great idea.

Christopher Jensen, a 30-year-old venture capitalist and Naples native, believes he has one.
It’s called VaultWorthy.com, described on its website as “a secure document storage platform” — basically, a virtual safe deposit box in which to store one’s most important documents.

“Being in the venture capital business, I constantly have ideas or I’m tweaking business models,” Jensen said. “I had this one idea and it wouldn’t go away. It kept evolving in my head.”

As a managing principal of Anderson Pacific Corp. (APC), a Chicago-based private investment firm, Jensen began thinking in early 2011 about the fate of the vital documents he shared with his business partners, should anything happen to any of them.

“Inevitably, a lot of these documents could be overlooked,” said Jensen, a graduate of Barron Collier High School and Indiana University. “I started thinking that it would make sense for me to get a safe deposit box at some point. Then I realized I’m not home enough to have a safe deposit box.

“What if I could develop an online safe deposit box that you could access anywhere at anytime?”

On May 1, VaultWorthy.com was launched. For $12.95 a month, subscribers can store up to 50 documents — ranging from passports and birth certificates to wills, insurance policies, medical records, investments and deeds — in their vault.

Termed “succession management,” a client also can choose up to five vault trustees — family members, attorneys or financial advisers — who would have access to some or all of the documents pending permission, death or a level of disability.

To bring his initial idea to fruition, Jensen partnered with SproutBox.com, a Bloomington, Ind., software/venture capital firm. Jensen also received financial backing from his father, Clark Jensen, a Naples businessman involved in the building, development and banking industries.

“I’m the kind of dad that would say, ‘Chris, I appreciate your energy and enthusiasm, but I don’t believe in this product,” said the elder Jensen, who received his MBA from Northwestern. “When Chris came to me, I said, ‘That’s a good idea and I’ll put money on it.’ I’m not the kind of dad who would give you money and say have some fun. This is a business deal.”

Clark Jensen, who sits on boards of various local professional, civic and nonprofit organizations, serves in an advisory capacity, helping his son refine the company’s purpose, clientele and marketing strategy.

Through his voracious reading, Chris Jensen came across SproutBox, which rather than money, chooses four hand-picked startups each year and provides the computer coding personnel and resources necessary to bring a company to life.

SproutBox developed the entire VaultWorthy site and software in exchange for equity in the company. No money changed hands. Simply put, Jensen is the product’s inventor and designer and SproutBox is the product’s manufacturer. SproutBox staff handles the site, so Chris Jensen’s company doesn’t need employees.

“My initial reaction (to the idea) was skeptical, but as an investor, I have to be,” said Brad Whistler, SproutBox’s founder and managing director. “There are a lot of cloud solutions (to document storage). But those didn’t solve the big problem of document management and who gets access to these documents in a life-changing event.
“Chris uncovered a very big hole in the market that needs to be addressed. When he pitched it, it was one of those moments when the light bulb goes on.”

One of the biggest concerns the Jensens had was website security. A 256-bit AES encryption on VaultWorthy.com is many times stronger than standard bank-level security, the company’s website states. Not even the site’s developers or the company’s officers can access and read a subscriber’s stored documents.

Outside security experts audit the site regularly to gauge its vulnerability.
“We’re being hyper-sensitive with the security of the site,” Chris Jensen said. “We’re spending a decent amount of money beyond the industry standards on firewalls and encryption.
“VaultWorthy provides users the peace of mind that their most important documents are in one, secure and organized location accessible from anywhere at any time.”

There are two ways VaultWorthy services will be marketed and sold — first on a personal, individual sign-up basis through the website. The other is through a white label strategy, which allows banks, law firms, and other institutions to rebrand the VaultWorthy product as their own and market it to their customers.

With sales growing daily, Jensen hopes that more of the buying public will find his idea as compelling as the young entrepreneur was to SproutBox.

“I was just impressed with Chris even before I heard his idea,” Whistler said. “I had the sense this was a guy who was going to be successful and with whom I wanted to be in business with.

“He is a guy that really understands and is able to connect with people. This is a product that really needs that.”

Full Article Link-

http://www.naplesnews.com/news/2012/may/21/chris-jensen-vaultworthy-document-storage-protect/

VAULTWORTHY LAUNCHES CLOUD-BASED DOCUMENT STORAGE PLATFORM

CHICAGO, IL. (May 1, 2012)—VaultWorthy, a secure online document storage platform is designed to organize and protect critical documents while allowing trusted advisors including family members, accountants and attorneys access to documents when needed.

VaultWorthy stores valuable documents including, but not limited to estate and insurance policies, investment records, tax returns, medical history, banking information and other essential planning documents in a secure online filing cabinet.

Documents are stored using 256-bit AES encryption with high redundancy across multiple physical locations in Tier 3 data center facilities. VaultWorthy also performs frequent audits and has additional enhanced security provisions to ensure the highest protection of its users sensitive documents.

The user-friendly platform, created by 30-year-old entrepreneur Christopher Jensen, was designed to provide individuals global access to their most important documents as an alternative to a traditional safe deposit box.

“VaultWorthy provides users peace of mind that ones most important documents are in one secure and organized location accessible from anywhere at anytime”. “Allowing users to identify trusted advisors and loved ones that can access documents now or in times of need provides a succession feature that is unique to the space,” said Jensen.

He created VaultWorthy in an effort to minimize search time across multiple computers, email accounts, and filing cabinets while preserving his most important documents. Users can upload up to 50 documents to their VaultWorthy account for a monthly subscription of $12.95 and can provide access to as many as five VaultTrustees. The first month trial is free. Each user has a unique VaultWorthy e-mail address that can be used to forward documents to their vault, or instruct their accountant, attorney or financial planner to do so.

Jensen, an entrepreneur and venture capitalist, is a principal at Anderson Pacific Corporation, a Chicago-based private investment firm focused in the telecommunication, media and SasS industries. He developed VaultWorthy in partnership with SproutBox, LLC, a Bloomington, Indiana-based software development fund.

VaultWorthy, established in 2012, is a secure online document storage platform for critical documents. Additional information is available at: www.vaultworthy.com.

Bridge Bank Provides $6 Million to FiberLink, LLC

Bridge Bank Provides $6 Million to FiberLink, LLC

San Jose, CA – January 24, 2012- Bridge Capital Holdings (NASDAQ: BBNK), whose subsidiary is Bridge Bank, National Association, a full service professional business bank headquartered in Silicon Valley, announced today that it has provided FiberLink, LLC with a $6 million term loan.

“It was a real pleasure working with Bridge Bank on this transaction, as they took the time to fully understand our business and were flexible in adapting to our unique needs,” said Christopher J. Jensen, director of corporate development for FiberLink, LLC.

“FiberLink, LLC owns several fiber optic transmission lines running through a number of major metropolitan areas,” said Dan Pistone, senior vice president of Bridge Bank’s Technology Banking group. “And as the need for data transmission increases with the growth of digital media and communications, FiberLink will be very well-positioned to capitalize on the increased demand for long-haul data transmission bandwidth. Bridge Bank is pleased to count FiberLink as one of our newest clients as we continue to grow our technology banking practice.”

FiberLink, LLC was formed in 2004 and owns a network of data transmission assets comprised of over 2,000 fiber optic route miles covering eight states. Its networks run through eight states between Chicago and Denver and Chicago and New Orleans. FiberLink, LLC is owned by three independent telephone exchange companies and Anderson Pacific Corporation, a Chicago-based private investment firm specializing in forming and acquiring companies in the media and telecommunications industry. Its holdings include the increasingly popular BlockShopper.com, a data service for current and aspiring homeowners, home buyers and home sellers.

About Bridge Capital Holdings
Bridge Capital Holdings is the holding company for Bridge Bank, National Association. Bridge Capital Holdings was formed on October 1, 2004 and holds a Global Select listing on the NASDAQ stock market under the trading symbol BBNK. For additional information, visit the Bridge Capital Holdings website at www.bridgecapitalholdings.com.

CHICAGO GROUP LAUNCHES EQUIPMENT LEASING FACILITY

PRESS RELEASE

Clark D. Jensen
Near North Partners, LLC
Cell: 239.269.6254
E-mail: clark@nearnorthpartners.com

For Immediate Release:

CHICAGO GROUP LAUNCHES EQUIPMENT LEASING FACILITY

CHICAGO, Ill. (January 15, 2012)—A group of four telecom and leasing industry professionals have joined to form Near North Partners, LLC to lease mission-critical equipment to emermging technology companies.

The company was created to address the unique financial needs of expanding communication and data services companies that require large capital expenditures to fuel their early-stage growth and profitability.

“We are addressing a niche in the financial services industry that cannot be serviced by commercial banks and public leasing companies,” according to Christopher J. Jensen, a principal at Anderson Pacific Corporation, and a founding member of Near North Partners, LLC. “The experience and entrepreneurial background of the principals of this company have created a unique environment for a streamlined approach to equipment leasing, vital to growing technology companies.”

Emerging technology companies need financial partners who not only understand the capital equipment requirements of the business, but who can respond quickly and creatively to opportunities for growth in the marketplace. Near North Partners is internally financed and has the ability to make quick-response leasing approval decisions not possible in larger financial services companies.

The principals of the company combine more than 125 years of telecommunication, data services, and leasing experience to create a hands-on approach to capital funding requirements for companies that are generally ignored by traditional leasing firms and lending institutions. Each prospective customer of Near North Partners, LLC has access to a partner who has experience specific to their business, and to a partner who has the financial expertise to evaluate their unique business plans.

Near North Partners, LLC is a Chicago-based equipment leasing company, but has long-standing relationships and ownership experience throughout the country in every aspect of the telecommunications industry.

Near North Partners, LLC, established in 2012, is an equipment leasing company serving the capital needs of the telecommunications and data services market. Additional information is available at www.nearnorthpartners.com.

###

FiberLink, LLC

Chicago, IL
January 2011

FiberLink, LLC had its sixth successful year in 2010 in attracting major new users of its dark fiber networks between Chicago and Denver and Chicago and New Orleans. The two new transactions in 2010 brought the number of users on FiberLink’s routes to 25.

FiberLink sells dark fiber or provides connectivity services to telecommunications providers such as local telephone exchange companies, cable TV companies, cellular carriers, large business users and some of the largest telecommunications companies in the world.

In 2010, FiberLink completed a transaction with the regional fiber network affiliate of one of the major cellular companies in the United States, and a regional fiber services company headquartered in the Midwest. FiberLink provides ongoing operations and maintenance services to those clients and provides colocation space along with its fiber optic transmission lines. FiberLink is currently in active discussions with other prospective dark fiber users.

Also in 2010, FiberLink completed work on a data center in downtown Chicago, located at 725 South Wells Street. It was the lead investor in and co founder of the project. Occupancy by its major anchor tenant was completed in April of last year. Extensive renovations to the building supplying robust power and connectivity along with significant floor loading makes the 725 facility, owned by Digital Capital Partners, LLC, one of the finest facilities of its kind in Chicago.

FiberLink, LLC was formed in 2004, when it acquired over 72 strands on a 1,160 mile fiber optic transmission line extending from downtown Chicago to downtown Denver, connecting such population centers as Des Moines and Omaha. FiberLink later completed a swap with 360networks Inc., which expanded its routes from Chicago to New Orleans, through Saint Louis and Memphis.

FiberLink is owned by three independent telephone exchange companies and Anderson Pacific Corporation, a Chicago-based private investment firm with various telecommunications holdings. FiberLink’s corporate and sales office is in Chicago, and its sales, operations and administrative offices are in Omaha and Cambridge, Nebraska.

Contact

Christopher J. Jensen
Director of Business Development
FiberLink, LLC
875 North Michigan Avenue Suite 3100
Chicago, Illinois 60611
312.602.5488
Email: chris@andersonpacific.com

iTextAlert, LLC

Chicago, IL, September 17, 2010 – Geneseo Communications, Inc. (www.geneseo.net) and Anderson Pacific Corporation (www.andersonpacific.com) have formed iTextAlert, LLC, which today completed the acquisition of the North American rights to a proprietary software source code in the wireless monitoring and control industry.

The seller is a Hong Kong-based company, Insite Communications, Ltd., whose principals over the past years have developed and refined a software that allows their proprietary device to receive inputs from various locations, such as windows, doors, thermostats, fluid levels, and motion detectors, from sensors. The device then transmits a message as directed to cell phones, PDAs, computers or monitoring centers.

The wireless industry segment this product will penetrate is known as Machine to Machine (M2M), a nascent telecom sector that is expected to grow to millions of users in the “non voice” cellular communications field, which is ultimately expected to consume 20 percent of wireless traffic in the coming decades.

The iText service works through a proprietary switching agreement that allows the device to work wherever GSM coverage exists. iText will further develop the mobile device and improve its software. It expects to initially market its service through various telecom industry and other channels by mid 2011.

Geneseo is a holding company for a local telephone exchange in western Illinois that has been active in the formation of several investment companies. Anderson Pacific is a Chicago-based private equity firm specializing in the telecommunications industry. The companies are or have been partners in cable television systems, regional fiber optic networks, wireless back haul networks and a Chicago data center.

The company will be headquartered at GCI’s office in Geneseo, Illinois, with an executive and corporate development office in the John Hancock Center in Chicago.

For further information, please contact Christopher J. Jensen, Managing Director, Anderson Pacific Corporation, 875 North Michigan Avenue, Suite 3100, Chicago, Illinois 60611, (312) 602-5488, Chris@andersonpacific.com