Telx Sold

I had been hearing rumors of the sale of Telx for a while. Many I spoke with feared an incumbent provider would do the purchasing. As you may know Telx provides the physical location for much of the voice peering taking place in the US through their facilities in New York ad Atlanta. They own these facilities and with their association with the VPF, they have made it a no brainer for carriers and enterprises of all sizes to use their facilities as a location to peer with others. The company was just sold to GI Partners, a private equity company. The firm invests in companies with recurring revenue and asset-intensive business models in North America and Western Europe.
I believe this sale signals the beginning of interest levels increasing for similar locations such as Terremark’s NAP of the Americas in Miami and other facilities such as One Wilshire in Los Angeles. As Hunter Newby has said many times, his company has prime real estate and there is only so much of it available. Terremark Worldwide saw its stock appreciate just over 3% today, probably related to this news.

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