Advertisement

Networking News

Nitel Acquires Hypercore, Its First Deal Following Private Equity Investment

Joseph F. Kovar

‘We’ve made a lot of investment in organic growth as well as expanding our product lines and footprint. We are also looking to do inorganic growth, starting with Hypercore. We are also looking to buy strategic capabilities, particularly in the security sector,’ says Nitel CEO Margi Shaw

 ARTICLE TITLE HERE

Nitel, a provider of Network-as-a-Service technology to solution providers, Monday unveiled the acquisition of fellow technology developer Hypercore Networks.

The acquisition, for an undisclosed sum, marks the first acquisition that Nitel has made since it was acquired in December by U.K.-based private equity firm Cinven, said Margi Shaw, CEO of the Chicago-based company.

Nitel, which was founded 20 years ago, provides Network as a Service, including managed routing, software-defined networking and layered security via a community of channel partners and solution architects, Shaw told CRN.

[Related: The Top 10 Telecom Mergers And Acquisitions Of 2021 (So Far)]

“We’re an asset-light company,” she said. “We have core networking and routing infrastructure in the U.S., and we’ll extend it to the international market. But for the last mile, we leverage regional carriers, RBOCs and other providers.”

Garland, Texas-based Hypercore provides business-focused connectivity and telecom technologies, including voice and expanded software-defined networking technologies, and brings with it a multilingual operating center in Costa Rica, Shaw said. All of Hypercore’s founding partners are joining Nitel in strategic leadership positions, she said.

The First, But Not Last

Nitel has focused primarily on organic growth, and Hypercore is the company’s first acquisition—but not its last, Shaw said.

“We’ve made a lot of investment in organic growth as well as expanding our product lines and footprint,” she said. “We are also looking to do inorganic growth, starting with Hypercore. We are also looking to buy strategic capabilities, particularly in the security sector. Look for more from us with the next 12 months.”

Nitel has focused primarily on the North America market but with Cinven’s support that will change, Shaw said.

“Cinven provides a great opportunity for Nitel to expand into international markets,” she said. “They have a substantial global market, while we have an extensive footprint in North America. They’ve expanded our growth path aggressively.”

Joseph F. Kovar

Joseph F. Kovar is a senior editor and reporter for the storage and the non-tech-focused channel beats for CRN. He keeps readers abreast of the latest issues related to such areas as data life-cycle, business continuity and disaster recovery, and data centers, along with related services and software, while highlighting some of the key trends that impact the IT channel overall. He can be reached at jkovar@thechannelcompany.com.

Advertisement
Advertisement
Advertisement
Sponsored Post
Advertisement
Advertisement