September 2, 2016
Cascadia Capital is pleased to announce that its clients CABLExpress Corporation d/b/a CXtec (“CXtec” or the “Company”) and TERACAI Corporation (“TERACAI”) have been acquired by 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. Cascadia served as the exclusive financial advisor to both CXtec and 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.”
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