Investcorp Buys 26% Stake in TelePacific

Investcorp said it bought a 26% stake in closely held TelePacific Communications for $125 million. TelePacific, which provides telephone and high-speed Internet access services to small and mid-size businesses, plans to use the money to expand to several major U.S. metropolitan areas outside Los Angeles, its headquarters, over the next year. The company also plans to expand its customer-support organization.

Investcorp will appoint two people to TelePacific’s board, said Todd Fogarty, an outside spokesman for the firm. Investcorp has offices in New York, London and Bahrain. It has completed more than 60 corporate investments valued at more than $16 billion in companies, including Werner Holdings Co. and the William Carter Co.