Riverside Partners had no investment in the Albany company before this deal closed late last month.

Terms of the deal were not disclosed.

Tech Valley Communications will remain headquartered in Albany, where it has 55-60 employees.

The company, which provides phone service and Internet access, plans to add 30 jobs and acquire additional companies as part of a plan to expand north and into New England.

“This is a significant development for the company and for the region,” said Kevin O’Connor , Tech Valley Communications' co-founder and CEO.

O’Connor, along with six members of Tech Valley’s management team, now share a minority interest in the company. Except for Larry Davis , who co-founded the company in 1999 with Kevin O’Connor , all of the company’s remaining board members were bought out as part of the deal. Davis still retains a small share of the business, but will be replaced as chairman, O’Connor said.

O’Connor will remain as CEO and keep his seat on the board.

The remainder of the board positions will be filled by representatives by Riverside Partners, said Steven Kaplan , a general partner at Riverside Partners.

He said that Riverside will invest additional capital soon so Tech Valley Communications can expand its fiber network into Schenectady, Cohoes and Saratoga County, and weigh acquisitions.

“We’re really starting to look at companies,” Kaplan said.

Tech Valley Communications already expanded its local presence by acquiring GFC Communications in 2000 and merging with Mid-Hudson Communications in 2002. Tech Valley Communications owns and operates more than 450 miles of fiber optic cable that connect commercial buildings in the Capital Region. In April, it broke into the residential market with a low-cost wireless service. Tech Valley Communications had $14.4 million in revenue in 2009, according to The Business Review’s most recent list of privately held companies. O’Connor expects the company’s revenue will grow to $50 million to $60 million company by the end of five years.

“It would be through both organic growth and acquisitions,” he said.

This is at least Riverside’s second investment in a local company. In 2005, the Riverside paired with another equity firm to finance the $18 million acquisition of a Montreal wireless company by Sixnet, an electronics device manufacturer in Clifton Park.