Boston-based investment firms ABRY Partners and Berkshire Partners have acquired The Telx Group Inc. Telx, based in New York, is a provider of global interconnection and colocation services. Terms of the transaction were not disclosed. Evercore Partners served as financial advisor to Telx on the transaction and Paul Hastings LLP served as legal advisor.
ABRY Partners, LLC and Berkshire Partners LLC, two Boston-based investment firms, today announced the successful closing of their previously announced acquisition of The Telx Group, Inc. (“Telx”), one of the fastest-growing providers of global interconnection and colocation services. Terms of the transaction were not disclosed.
Telx, headquartered in New York City, operates a national portfolio of interconnection and colocation facilities in the most strategic data markets in the United States. Since its founding in 2000, Telx has grown its footprint to meet its clients’ increased demand for access to an ecosystem of telecommunications carriers, ISPs and content providers.
“Berkshire and ABRY’s deep knowledge of the communications industry and long history of successfully partnering with management teams make them ideal partners,” said Eric Shepcaro, Chief Executive Officer of Telx. “The combination of experience and capital creates exciting opportunities for Telx as we remain focused on building the company organically and developing innovative interconnection products and data center services for our clients.”
“As network usage for business communications continues to grow, service providers will need solutions that store and facilitate the increasing quantities of video, voice and data,” said C.J. Brucato, Partner at ABRY. “This large volume of traffic creates significant growth opportunities for Telx and we are excited to partner with Eric and the Telx management team for this next chapter.”
“Telx is considered the leading provider of interconnection and data center solutions in the United States,” said Larry Hamelsky, Managing Director of Berkshire Partners. “In addition to the valuable relationships Telx has built with its clients, a key reason for the company’s success is its commitment to providing cost-effective, reliable and secure solutions and services. We believe Telx is well positioned to continue delivering quality service and innovative products to its clients.”
ABRY and Berkshire announced on August 8, 2011 that they had signed a definitive agreement to acquire Telx.
Evercore Partners served as financial advisor to Telx on the transaction and Paul Hastings LLP served as legal advisor.
About The Telx Group, Inc.
Telx operates network-neutral interconnection facilities and is a leading strategic partner for global interconnectivity and data center solutions. With 15 strategically located interconnection and colocation facilities across the U.S., Telx provides cost-effective, reliable and secure access to an ecosystem of over 950+ telecommunications carriers, ISPs, content providers, technology companies and leading global enterprises. With over 35,000+ direct connections, Telx is able to provide lower costs, near zero latency and fewer points of failure, allowing organizations to improve network performance, reduce time to market and tap into new business opportunities to build a competitive advantage. For more information, please visit www.telx.com.
About ABRY Partners, LLC
Founded in 1989, ABRY is one of the most experienced and successful media, communications, and business information services sector-focused private equity investment firms in North America. ABRY has completed over $27 billion of transactions, representing investments in more than 450 properties. The firm is currently managing over $3.5 billion of total capital and investing out of a $1.6 billion private equity fund, a $750 million senior equity/mezzanine fund and a $1.2 billion senior debt fund. ABRY has extensive data center investing experience, having completed over $1.5 billion of transactions and investments in data center companies such as CyrusOne, Datapipe, Hosted Solutions, Q9 Networks and Sentrum. More information is available at www.abry.com.
About Berkshire Partners LLC
Berkshire Partners, the Boston-based private equity firm, has invested in over 100 leading middle market companies for over twenty-five years through eight investment funds with aggregate capital of $11 billion. Berkshire has developed specific industry experience in several areas including consumer products and retail, business services, industrial manufacturing, transportation and communications. Representative investments include Amscan/Party City, Bare Escentuals, Carter’s, Crown Castle International, NEW Asurion and TransDigm. The firm seeks to invest $50 million to $500 million of equity capital in each portfolio company.