A San Francisco based private equity firm, Golden Gate Capital, has acquired Tollgrade Communications for $137 million. Located in Cheswick, Tollgrade has 109 employees and is the second Pittsburgh area tech firm to be bought in several months. Wilkins based Vocollect, a voice product firm, was acquired by Intermec, a Washington based firm that said it will keep Vocollect's employees and operations in the Pittsburgh region.
Financial Advisor for Janney, Montgomery Scott, Pete Schlict, says that there are reasons Golden Gate Capital may choose to keep Tollgrade local. "The installed base of intellectual property is here in Western Pennsylvania, and so it wold be reasonable to say that that would be compelling reason in order to remain in Western Pennsylvania."
Golden Gate Capital works with management teams to invest in potential growth areas. If shareholders approve the acquisition they will be paid out $10.10 per common share, then Tollgrade will close in the second quarter of 2011 taking it of the New York Stock Exchange.