Masergy will be acquired by ABRY Partners, a private equity firm focused on media companies. The move is expected to provide a capital boost to privately-owned Masergy, which focuses on cloud-based and managed WAN services.
Financial details of the transaction weren't provided. Masergy and ABRY, which announced the deal last week, expect the transaction to close within 90 days. Masergy's existing management team will remain in place.
Chris MacFarland, Masergy's CEO, said ABRY has a strong track record and experience with media, communications and information companies.
"We believe they are the right partner to continue our growth plans while providing outstanding service to our clients," MacFarland said in a statement. "We are very proud of what Masergy has achieved to date and we look forward to executing the next phase of our our growth strategy."
Masergy last fall laid the groundwork for a $100 million IPO, but in February 2011, during the week it was to go public, said it would postpone those plans due to "market conditions."
Plano, Texas-based Masergy's focus is managed, secure virtualized network services delivered to enterprises. The company uses various transport technologies to deliver services using a native MPLS network, and its services portfolio includes everything from VPLS and video QoS to managed routing and managed firewall, as well as hosted network management and control.
Privately-held Masergy partners with VARs, systems integrators and telecommunications agents as well as consultants and network and video equipment manufacturers. The company is also as Cisco Managed Services partner, offering Cisco-powered managed TelePresence connectivity.
Among other recent moves, Masergy was confirmed to participate in the new Open Visual Communications Consortium, a group founded by Polycom to drive open standards among videoconferencing service providers.
Blake Battaglia, a partner at ABRY, noted that Masergy "has built a highly scalable business with a diversified blue chip customer base.
"We are strong believers in the global information technology and emerging cloud services market and are excited to be participating in it through our acquisition of Masergy," Battaglia said in a statement.