Private equity firm ABRY Partners made another purchase in the internet infrastructure space to go along with Sidera Networks and Masergy. This time they have teamed up with fellow Boston-based investment firm Berkshire Partners to purchase interconnection specialist Telx. ABRY certainly has developed a well rounded appreciation for the data and internet sector lately, with three substantial yet basically non-overlapping purchases now in the past twelve months.
Telx operates out of 15 locations in major markets nationally, including its flagship NYC facilities at 60 Hudson and 111 8th Ave, providing the glue that holds together over 900 other networks. Lately they have been making strides in the Ethernet Exchange business, leveraging their already substantial presence in the interconnection business in a partnership with Neutral Tandem. They also recently announced an initiative aimed at optimizing the interconnection of clouds .
Telx was already in the hands of private equity of course, as GI Partners bought them a few years back. The company had made steps toward an IPO last year, filing an S-1 with the SEC, so we knew they were looking for some sort of exit strategy. However, apparently the going public route wasn't as attractive, and instead the company will simply change hands privately. Terms of today's transaction were not disclosed.