- Associated Press - Friday, December 17, 2010

RALEIGH, N.C. (AP) — An investment group with ties to the founder of the company formerly known as Blackwater has bought the security firm, which was heavily criticized for its contractors’ actions in Iraq.

A statement Friday from USTC Holdings said the acquisition of the company now called Xe Services includes its training facility in North Carolina.

Terms of the deal were not disclosed. The statement says founder Erik Prince will no longer have an equity stake and no longer be involved in Xe’s management or operations.

Moyock, N.C.-based Xe was both renowned and reviled for its involvement with the U.S. government in Iraq and elsewhere.

The ownership group is led by two private equity firms, including Forte Capital Advisors. Forte managing partner Jason DeYonker has been a longtime financial adviser to Prince.