Discussion

Where a company acquiring control of a certificated telecommunications carrier does not possess a certificate of public convenience and necessity (CPCN), the Commission applies the same requirements as to an applicant seeking a CPCN to exercise the type of authority held by the company being acquired: a minimum of $100,000 in cash or cash equivalent, and technical expertise in telecommunications or a related business. Review of the documents⁵ submitted in support of H.I.G.'s financial qualifications indicate that through ING's commitment to provide one or more credit facilities to both fund the proposed transaction and to provide working capital for the operations of Evercom and its facilities, H.I.G. offers financial resources which exceed the Commission's minimum requirements for resellers of telecommunication services.

Applicants state that H.I.G. intends to retain Evercom's current experienced managerial team who has the Commission required technical and managerial qualifications. In addition, it appears that no affiliate, officer, director, partner, or owner of more than 10% of H.I.G., or any person acting in that capacity, has filed for bankruptcy or been sanctioned by the FCC or any state regulatory Commission for failure to comply with any statute, rule or order or been found civilly liable for a violation of § 1700 et seq. of the California Business and Professions Code or for any actions that involved misrepresentations to consumers, or is currently under investigation for similar violations. Thus, applicants satisfy the Commission's requirements on these factors.

In all, the proposed transaction will benefit the public interest by resulting in a better-financed, more viable competitive provider of local and interexchange telecommunications services.

This application proposes no new construction. Thus, there is no possibility that this proposed transaction may have any significant impact on the environment. There are no protests to this application. Applicants' request is granted.