Orotek lands $10M in funding, plans acquisitions
Orotek Inc. – which provides direct sales, installation and construction services for cable and broadband providers – has secured $10 million in venture capital funding from Atlanta-based Southfund Partners.
The company plans to use the funds for acquisitions as part of a three-year strategic plan to expand the company into more national coverage.
“We have to move quickly to expand our resources,” said William ‘Trey’ Brantley, president and CEO of Orotek. “The best way for us to meet the immediate needs of the cable and broadband providers is to seek out and acquire companies with MSO contracts already in place. This may mean several acquisitions in order to expand into multiple markets quickly.”
Orotek is looking to acquire other direct sales companies, as well as companies providing installation services. “Getting the sales installed quickly is key to maintaining high sales retention rates,” Brantley added. “We realize that with the increased sales efforts, we will need to expand our resources on the installation side, as well.”
Increased competition in the cable and broadband sector, along with decreasing cable subscriber growth and consumer concerns about the recession, has given companies like Orotek, who augment operator marketing efforts with direct sales services, opportunities for both market and personnel expansion.
“While the current global economic turmoil is taking its toll on the business sector, companies with a strong balance sheet look at the situation as an opportunity for expansion,” Brantley said. “Orotek has spent the past few years building a strong business in the Southeast, with a minimum debt load and consistently positive cash flow. Now we are looking for acquisitions to continue our growth and expand our market reach.”