Mergers & Acquisitions

Mergers & Acquisitions

August 08, 2011

The Telx Group Acquired by ABRY Partners and Berkshire Partners

GI Partners, a mid-market private investment firm, has sold its portfolio company, The Telx Group, Inc., to ABRY Partners and Berkshire Partners LLC, two Boston-based investment firms.

Terms of the transaction were  not disclosed.

Telx operates network-neutral interconnection facilities and is a leading strategic partner for global interconnectivity and data center solutions.

The company was acquired by GI Partners in 2006 and, under the investment firm's nearly five-year stewardship, Telx achieved considerable organic growth in its existing markets and also dramatically improved its competitive position as a result of key add-on acquisitions. The company has since developed a national footprint of 15 locations starting from two facilities at the time of acquisition.

"We are pleased with the performance of Telx under our ownership and the gains we and the management team have achieved. We believe that under the ownership of Berkshire and ABRY, both of whom have experience investing in this sector, the company will continue to grow within its existing facilities and selectively identify domestic and international expansion opportunities," said Howard Park, a managing director of GI Partners, in a statement.

Eric Shepcaro (News - Alert), chief executive officer of Telx, said that Telx delivers best-in-class interconnection and colocation services and has achieved consistent growth and profitability since its acquisition by GI Partners.

“We have been extremely pleased with our GI partnership, which has provided valuable insights, resources and intensive operational engagement as we expanded our business and identified select add-on acquisitions,” said Shepcaro.

He said that joining forces with Berkshire and ABRY allows the company with continued opportunity to work closely with the partners to deliver interconnection product and data center services to meet the increased volumes of data and voice traffic.

Shepcaro said that for the company’s customers there will be no changes and they will receive the same excellent service they have come to expect.

"Eric and the Telx management team have done an excellent job creating premier facilities for interconnection," said Larry Hamelsky, managing director of Berkshire Partners.

Hamelsky said that his company looks forward to partnering with them as they continue to build on this platform to service their clients' increasing demand for network centric applications.

Anil Sharma is a contributing editor for TMCnet. To read more of his articles, please visit his columnist page.

Edited by Rich Steeves

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