Telx Acquired By Boston Private Equity Firms

Telx's new investors are ABRY Partners and Berkshire Partners, the former of which has been particularly active in the wave of M&A moves sweeping the telecom service provider space.

Telx, based in New York, provides global interconnection and colocation services for more than 900 customers. Menlo Park, Calif.-based GI Partners acquired Telx in 2006 and the company has seen top line growth of more than 40 percent since that time, according to the firm.

"We are pleased with the performance of Telx under our ownership and the gains we and the management team have achieved," said Howard Park, a managing director of GI Partners, in a statement. "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."

Terms of the acquisition were not provided. In the statement, Telx CEO Eric Shepcaro added that Telx's customers will not see any changes as a result of the sale.

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The ongoing consolidation of the telecom service provider segment has meant plenty of private equity buy-in. One of Telx's new owners, ABRY Partners, has been especially active in the past year, having completed a $1.2 billion acquisition of RCN in August 2010 and agreeing to acquire cloud and managed WAN services provider Masergy in July.