H.I.G. Growth Partners News
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H.I.G. Capital Completes Acquisition of CXtec and TERACAI
MIAMI – August 29, 2016 – H.I.G. Capital ("H.I.G."), a leading global private equity and alternative asset investment firm with more than $20 billion of equity capital under management, is pleased to announce that one of its affiliates has acquired CABLExpress Corporation d/b/a CXtec (“CXtec” or the “Company”) and TERACAI Corporation (“TERACAI”).
Headquartered in Syracuse, NY, CXtec is a leading provider of refurbished networking, and telephony hardware and data center cabling products to a diverse base of blue-chip customers. Since its founding in 1978, the Company and its equal2new® brand of certified pre-owned equipment have established a market-leading position with deep domain expertise. CXtec’s robust systems and testing / certification processes ensure that IT procurement professionals are able to maintain and extend the life-cycle of existing IT infrastructure equipment by purchasing reliable refurbished hardware products at significant savings and short lead times. The Company’s growing RapidCare® service provides third-party maintenance solutions.
TERACAI, also headquartered in Syracuse, NY, is a Cisco Premier Partner and a leading provider of IT infrastructure solutions. TERACAI plans, designs, implements and monitors IT solutions that address clients’ network, data center, cloud collaboration, security, mobility, and contact center needs. TERACAI is an invaluable partner to its clients, helping them navigate the highly complex and rapidly evolving IT landscape by delivering unparalleled technical expertise.
Richard Stokes, Managing Director at H.I.G. Capital, commented, “CXtec is an established 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. CXtec and TERACAI are exceptionally well-positioned for continued growth, driven by a compelling value proposition and attractive industry tailwinds. We are excited to work with the company to take the business to the next level.”
William G. Pomeroy, who founded CXtec in 1978, today retired as CEO but will continue to serve on the board of directors and retain an ownership interest in the Company. Mr. Pomeroy noted, “I am proud of the business that we have built and look forward to the next chapter. H.I.G.’s vision for CXtec’s future and support for the Company’s strong culture gives me significant confidence that CXtec will continue to build on its outstanding reputation and legacy.”
Pete Belyea, who has served the Company for over 26 years in various leadership capacities, including most recently as President has assumed the role of Chief Executive Officer, effective immediately. “We’re excited to partner with H.I.G. Capital, a highly respected investment firm with significant industry expertise,” said Mr. Belyea. “CXtec continues to distinguish itself through a compelling value proposition, rigorous focus on product quality, and exceptional customer service, and we see a number of opportunities to accelerate growth to meet the evolving needs of our clients.”
Since its inception in 1978, CXtec has delivered value and support in current and legacy networking, voice and cable infrastructure, including its own brand of equal2new® certified pre-owned equipment. The company’s CABLExpress® division manufactures data center cabling products, including the Skinny-Trunk® Solution. CXtec has been ranked on the CRN Solution Provider 500 list of North America’s Top Technology Integrators for 16 consecutive years. CXtec’s headquarters and its Technology Certification and Distribution Center are located in Syracuse, NY. For more information, visit www.cxtec.com.
TERACAI provides core networking, collaboration, data center, and services solutions that help organizations meet their business goals. TERACAI has been ranked on the CRN Solution Provider 500 list of North America’s Top Technology Integrators every year since 2011. In 2013, TERACAI was named Cisco U.S. Partner of the Year by Ingram Micro’s Trust X Alliance (formerly VentureTech Network). TERACAI is located in Syracuse, NY. For more information, visit www.teracai.com.
About H.I.G. Capital
H.I.G. is a leading global private equity and alternative assets investment firm with $20 billion of equity capital under management.* Based in Miami, and with offices in New York, Boston, Chicago, Dallas, Los Angeles, San Francisco, and Atlanta in the U.S., as well as international affiliate offices in London, Hamburg, Madrid, Milan, Paris and Rio de Janeiro, H.I.G. specializes in providing both debt and equity capital to small and mid-sized companies, utilizing a flexible and operationally focused/ value-added approach:
- H.I.G.'s equity funds invest in management buyouts, recapitalizations and corporate carve-outs of both profitable as well as underperforming manufacturing and service businesses.
- H.I.G.'s debt funds invest in senior, unitranche and junior debt financing to companies across the size spectrum, both on a primary (direct origination) basis, as well as in the secondary markets. H.I.G. is also a leading CLO manager, through its WhiteHorse family of vehicles, and manages a publicly traded BDC, WhiteHorse Finance.
- H.I.G.’s real estate funds invest in value-added properties, which can benefit from improved asset management practices.
Since its founding in 1993, H.I.G. has invested in and managed more than 200 companies worldwide. The firm's current portfolio includes more than 100 companies with combined sales in excess of $30 billion. For more information, please refer to the H.I.G. website at www.higcapital.com.
* Based on total capital commitments managed by H.I.G. Capital and affiliates.