Telx, a colocation and interconnection provider, is going private as it reached a deal to be acquired by private equity firms ABRY Partners and Berkshire Partners.
As has been the case with other deals ABRY has conducted in buying other service provider assets, neither ABRY Partners nor Berkshire Partners disclosed the terms of the deal.
What the two investment firms get out of the deal is a service provider that currently serves over 900 customers with about 34,000 interconnections that enables customers to connect with multiple service providers, enterprises and emerging cloud providers.
Under the ownership of GI Partners, which purchased the service provider in 2006, TELX has continued to grow its existing markets organically and through targeted M&A. Since 2006, TELX has expanded its footprint from just two facilities to 15 locations.
Despite a crippling recession, TELX was still able to exceed its sales goals, including 40 percent topline growth.
The acquisition of service providers by private equity firms has been an ongoing trend throughout the past year. ABRY itself has been quite active. In addition to TELX it purchased RCN Corp., separating its RCN Metro unit as Sidera, and more recently Masergy Communications.
- see this blog post
- and the release
Level 3 ups its service capabilities in Telx's New Jersey data center
Abry partners to acquire RCN for $1.2 billion
ABRY Group rechristens RCN Metro as Sidera Networks
Telecom's fiber network feeding frenzy: Top mergers and acquisitions