AboveNet attracts private equity firm TA Associates

JANUARY 13, 2011 -- Private equity firm TA Associates says it has made a minority investment, through a secondary purchase from an existing shareholder, in AboveNet Communications, Inc. (NYSE:ABVT). AboveNet provides fiber-optic network services throughout major metropolitan cities in the United States and Europe.

JANUARY 13, 2011 -- Private equity firm TA Associates says it has made a minority investment, through a secondary purchase from an existing shareholder, in AboveNet Communications, Inc. (NYSE:ABVT). AboveNet provides fiber-optic network services throughout major metropolitan cities in the United States and Europe.

Terms of the investment were not disclosed.

According to Hythem T. El-Nazer, a principal at TA Associates, “We have been evaluating investment opportunities in the fiber-optic network services area over the last 18 months, and we believe that AboveNet represents the best way to take advantage of the exciting growth opportunities in this area."

“Next-generation, high bandwidth connectivity services, such as those provided by AboveNet, are driving the worldwide growth in the telecom industry,” added Michael S. Berk, a managing director at TA Associates. “The overall U.S. market for AboveNet’s lit services is projected to grow 17% annually over the next five years, with Ethernet services projected to grow faster at 27%. With a core competency in high-bandwidth connectivity solutions and a global footprint, AboveNet is well positioned for continued growth in data-intensive verticals, as well as serving high-density data centers and Internet hub cities.”

TA Associates has invested in more than 400 companies and manages more than $16 billion in capital. The firm's prior investments in the communications sector include Aurora Networks, FreeWave Technologies, Idea Cellular, MetroPCS Communications, Micromax Informatics Ltd., SBA Communications, TARGUSinfo, TEOCO, and WIND Telecom S.p.A.

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