"This acquisition is the next logical step in the evolution of New Homes Realty," Richard Rick J. Davis, New Homes' chairman and CEO, says in a prepared statement. "New Homes has successfully developed a highly scalable and profitable business model that leverages the strength of its proprietary, web-enabled technology platform to generate and distribute leads to its own real estate broker and agent network of more than 400 sales associates."

John M. McDonald III, senior managing director of Hyde Park Capital Partners LLC, calls the transaction "a good deal for former New Homes' shareholders and a good deal for Alta." McDonald calls New Homes Realty "a tremendously successful company."

In the same statement, Tim Dibble, Alta's managing general partner, commends the departing New Homes Realty management team for doing "a fantastic job, positioning the company to be a leader in the residential real estate buy-side brokerage business."

Founded in 1996, Dibble says Alta Communications manages $1.5 billion in five funds, including the most recent fund, the $500 million Alta IX, which closed in 2003. The company has invested in over 100 communications companies and "targets later-stage opportunities, but will consider early-stage investments, particularly in the traditional media sector," Dibble says.

Hyde Park Capital's McDonald says his firm has advised on more than 200 investment banking transactions totaling more than $6 billion in transaction value.