7. Assignment of Proceeding

Catherine J.K. Sandoval is the assigned Commissioner and Myra J. Prestidge is the assigned Administrative Law Judge in this proceeding.

1. Securus, a Delaware corporation, was granted a CPCN authorizing the company to provide resold interLATA and intraLATA interexchange services in California, under its former name, Evercom Sytems, Inc., in D.04-05-049.

2. T-NETIX, a Texas corporation, was granted a CPCN authorizing the company to provide resold interLATA and intraLATA interexchange services in California, under its former name, Gateway Technologies, Inc., in D.93-08-012.

3. Both Securus and T-NETIX have previously filed advice letters to notify the Commission of the change in their company names.

4. Securus Holdings, a Texas corporation, is currently the ultimate parent company of Securus and T-NETIX and owns 100 percent of both Securus and T-NETIX.

5. Castle Partners, a Delaware limited liability partnership, is managed by Castle, a New York-based investment firm.

6. Castle invests in controlling interests in the buyout and development of middle-market companies principally in North America.

7. Castle and its affiliates do not directly provide telecommunications services to customers.

8. Castle Partners does not hold a CPCN authorizing the company to provide telecommunications services in California.

9. Connect Acquisition Corp. is 94 percent owned by Castle Partners.

10. In this transaction, Castle Partners will acquire indirect control of Securus and T-NETIX through the merger of Securus Holdings and a direct subsidiary of Connect Acquisition Corp.

11. After the merger, the subsidiary of Connect Acquisition Corp. that merged into Securus Holdings will no longer exist and will be merged into Securus Holdings.

12. After the merger, Securus Holdings will be a wholly-owned subsidiary of Connect Acquisition Corp., and Castle Partners will be the ultimate parent company of Securus Holdings, Securus, and T-NETIX.

13. After the merger, Securus and T-NETIX will retain their CPCNs, will continue to operate as separate companies, and will provide the same range of services to California customers under the same terms and for the same rates.

14. Securus and T-NETIX will retain their current day-to-day management after the merger.

15. Applicants have filed financial documents under seal which show that Castle Partners meets the Commission's financial requirements for issuance of a CPCN authorizing the provision of resold interexchange service.

16. Since Securus and T-NETIX will retain their current day-to-day management after the merger, Applicants have demonstrated sufficient technical expertise in telecommunications to meet Commission requirements for approval of this transaction.

17. The proposed transaction will strengthen the competitive position of Securus and T-NETIX by increasing the companies' access to capital, refinancing their indebtedness, and giving them access to the business expertise of Castle Partners.

18. Pursuant to Rule 11.4, Applicants have filed a motion for leave to file confidential materials contained in Exhibits C and E to the application, under seal.

19. Notice of this application appeared on the Commission Daily Calendar on April 22, 2011.

20. No protests to this application were filed.

21. No hearing is necessary.

1. Under Section 854, the Commission must approve any transfer of control of a regulated utility in order to ensure that the transfer is in the public interest and is not adverse to the interests of customers interested in receiving service.

2. The Commission will apply the same requirements to a request for approval of an agreement for the transfer of control of a provider of telecommunications services within California as it does to an initial applicant for authority to provide such services.

3. Applicants have met the Commission's requirements for approval of a transfer of control.

4. This transaction is in the public interest.

5. Applicants' motion to file their Exhibits C and E to the application under seal should be granted for two years.

6. Since this matter is uncontested, the decision should be effective on the date it is signed.

ORDER

IT IS ORDERED that:

1. Pursuant to Pub. Util. Code § 854, the joint application of Securus Technologies, Inc., T-NETIX Telecommunications Services, Inc., and Castle Harlan Partners V, L.P. for authorization to transfer indirect control of Securus Technologies, Inc., and T-NETIX, Inc., to Castle Harlan Partners V, L.P., is approved.

2. Within five days of the closing of the transaction, the surviving entities shall notify the Commission's Communications Division, by letter, of the consummation of the transaction.

3. The joint motion of Securus Technologies, Inc., T-NETIX Telecommunications Services, Inc., and Castle Harlan Partners V, L.P. to file their Exhibits C and E to the application under seal is granted. The information will remain under seal for a period of two years after the date of issuance of this order. During this two-year period, this information may not be viewed by any person other than the assigned Commissioner, the assigned Administrative Law Judge, the Assistant Chief Administrative Law Judge, or the Chief Administrative Law Judge, except as agreed to in writing by the parties or their successors in interest, or as ordered by a court of competent jurisdiction. If Securus Technologies, Inc., T-NETIX Telecommunications Services, Inc., and Castle Harlan Partners V, L.P., or their successors in interest, believe that it is necessary for this information to remain under seal for longer than two years, they or their successors in interest may file a new motion at least 30 days before the expiration of this limited protective order.

4. Application 11-04-012 is closed.

This order is effective today.

Dated December 15, 2011, at San Francisco, California.

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