TA Associates Inc. of Boston made a minority investment in AboveNet Communications Inc. through a secondary purchase from an existing shareholder. Financial terms were not disclosed. Ropes & Gray serves as TA’s legal counsel. AboveNet is a White Plains, N.Y.-based provider of fiber optic network services in the U.S. and Europe.
TA Associates, a leading growth private equity firm, today announced it has made a minority investment, through a secondary purchase from an existing shareholder, in AboveNet Communications, Inc. (NYSE:ABVT), a leading provider of fiber optic network services throughout major metropolitan cities in the United States and Europe. Terms of the investment were not disclosed.
Through its extensive fiber optic network, AboveNet provides Metro Services, Wide Area Networks (WAN), and Fiber Infrastructure Services to enterprise and carrier customers in major business centers in the U.S. and globally. AboveNet focuses on customers with 100 Mbps or more of bandwidth needs and serves a variety of sectors, including financial services, media, entertainment, healthcare and government. The company has more than 2,500 on-net buildings, and operates more than 2.2 million fiber miles worldwide, including 2.0 million metro fiber miles. In the U.S., AboveNet serves New York, New Jersey Metro Area, Boston, Chicago, Baltimore, Philadelphia, Washington DC, Northern Virginia Metro Area, Atlanta, Miami, San Francisco, San Jose Metro Area, Seattle, Portland, Phoenix, Los Angeles, Houston, Dallas, Austin and Denver. Internationally, the company serves London, Tokyo, Paris, Amsterdam and Frankfurt. AboveNet was founded in 1993 and is headquartered in White Plains, New York.
“We are very excited to be investors in AboveNet, a leader in the Internet Infrastructure industry,” said Hythem T. El-Nazer, a Principal at TA Associates. “AboveNet is led by an outstanding management team, and we are confident that it will be able to continue to leverage its unparalleled dense and expansive IP network to continue to provide world-class service to its customers in the markets in which they operate. We have been evaluating investment opportunities in the fiber optic network services area over the last 18 months, and we believe that AboveNet represents the best way to take advantage of the exciting growth opportunities in this area.”
“TA’s investment in AboveNet is a welcomed event for our company,” said William G. LaPerch, President and Chief Executive Officer of AboveNet Communications. “We are excited to have an experienced communications investor of their caliber be part of our shareholder base as we continue to strengthen our leadership position in the fast growing Internet Infrastructure market.”
“Next-generation, high bandwidth connectivity services, such as those provided by AboveNet, are driving the worldwide growth in the telecom industry,” said Michael S. Berk, a Managing Director at TA Associates. “The overall U.S. market for AboveNet’s lit services is projected to grow 17% annually over the next five years, with Ethernet services projected to grow faster at 27%. With a core competency in high-bandwidth connectivity solutions and a global footprint, AboveNet is well positioned for continued growth in data-intensive verticals, as well as serving high density data centers and Internet hub cities.”
TA Associates has more than four decades of investing experience, focusing on profitable growth companies. TA’s prior investments in the communications sector include Aurora Networks, FreeWave Technologies, Idea Cellular, MetroPCS Communications, Micromax Informatics Limited, SBA Communications, TARGUSinfo, TEOCO and WIND Telecom S.p.A.
Ropes & Gray provided legal counsel to TA Associates.
AboveNet Communications, Inc. (NYSE:ABVT)
AboveNet provides high-bandwidth connectivity solutions for business and carriers. Its private optical network delivers key network and IP services in and among top U.S. metro markets and globally. AboveNet’s network is widely used in demanding markets such as financial services, media, healthcare, retail and government. For more information, please visit www.above.net.
About TA Associates
Founded in 1968, TA Associates is one of the largest and most experienced global private equity firms. The firm has invested in more than 400 companies and manages more than $16 billion in capital. With offices in Boston, London, Menlo Park and Mumbai, TA Associates leads buyouts and minority recapitalizations of profitable growth companies in the technology, communications, financial services, business services, healthcare and consumer industries. More information about TA Associates can be found at www.ta.com.
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