H.I.G. Capital has acquired CABLExpress Corporation (DBA CXtec) and TERACAI Corporation.
CXtec is a provider of refurbished networking and telephony hardware and data center cabling products. The company was founded in 1978 by William Pomeroy. Mr. Pomeroy first ran the business out of his home, originally dealing in used IBM System 370 mainframe options. With closing of the transaction, Mr. Pomeroy has retired as CEO but will continue to serve on the board of directors and retain an ownership interest in the company. Today, CXtec sells its refurbished products to a diversified list of blue-chip customers. The company is headquartered in Syracuse (www.cxtec.com).
TERACAI designs, installs and manages networking, communications, and datacenter equipment. The company is also headquartered in Syracuse (www.teracai.com).
Pete Belyea, who has been with both CXtec and TERACAI for more than 26 years in various leadership capacities including most recently as President, has assumed the role of Chief Executive Officer of CXtec/ TERACAI. “We’re excited to partner with H.I.G. Capital, a highly respected investment firm with significant industry expertise,” said Mr. Belyea.
“CXtec is a leader in the market for refurbished networking and telephony hardware, and we look forward to supporting the continued expansion of the company’s product and service offerings,” said Richard Stokes, a Managing Director at H.I.G. “CXtec and TERACAI are exceptionally well-positioned for continued growth, driven by a compelling value proposition and attractive industry tailwinds.”
H.I.G. specializes in providing capital to small and medium-sized companies and invests in management-led buyouts and recapitalizations of manufacturing or service businesses. H.I.G. has more than $20 billion of capital under management. The firm was founded in 1993 and is based in Miami with additional offices in Atlanta, Boston, Chicago, Dallas, New York, San Francisco, London, Hamburg, Madrid, Milan, Paris, and Rio de Janeiro (www.higcapital.com).
© 2016 Private Equity Professional • 8-31-16