August 2011The Telx Group Acquired by ABRY Partners and Berkshire Partners

Menlo Park, California and Boston, Massachusetts, August 8, 2011 — GI Partners (GI), a leading mid-market private investment firm, announced today the sale of its portfolio company, The Telx Group, Inc. (Telx), one of the fastest growing providers of global interconnection and colocation facilities, to ABRY Partners and Berkshire Partners LLC, two Boston-based investment firms.  Terms of the transaction were not disclosed.

Telx facilities serve over 900 customers with approximately 34,000 interconnections, and customers can connect with hundreds of communication service providers, enterprises and cloud providers in Telx facilities.  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.  GI Partners also significantly expanded the management team with the appointment of industry veteran Eric Shepcaro as CEO, in addition to several other senior positions.  As a result of these and other initiatives, Telx achieved dramatic sales and EBITDA gains, including topline growth of over 40% throughout the hold period despite the recession, landing on the Inc. 5000 list two consecutive years in a row and earning a nod from Red Herring as a Top 100 North American Company.

Howard Park, a Managing Director of GI Partners, said, "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."

Eric Shepcaro, Chief Executive Officer of Telx said, "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.  Joining forces with Berkshire and ABRY allows us with continued opportunity to work closely with our partners to deliver interconnection product and data center services to meet the increased volumes of data and voice traffic.  For our 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.  "We look forward to partnering with them as they continue to build on this platform to service their clients' increasing demand for network centric applications."

Evercore Partners served as financial advisor to Telx on the transaction and Paul Hastings LLP served as legal advisor.


Source: Berkshire Partners, ABRY Partners and Telx
Title: The Telx Group Acquired by ABRY Partners and Berkshire Partners
Date Published: August 8, 2011
Date Accessed: August 7, 2013

Company Details

  • New York, New
  • Year Invested2011
  • Year Realized2015
  • IndustryDigital Infrastructure, Technology & Communications
  • TypesLeveraged Buyout

View Details