Berkshire Partners has agreed to acquire a majority interest in Masergy Communications from ABRY Partners, with an earlier Reuters report indicating the purchase price could top $900 million. The company provides hybrid networking, managed security and cloud communications services for medium and large enterprise customers. ABRY will exit an investment from 2011 with the sale.
Based in Plano, TX, Masergy is representative of an interesting rift in the Lone Star State. While much private equity activity in Texas is still concentrated in the energy industry, the state is home to successful companies in other sectors, too—including plenty of tech companies like Masergy. Since the start of 2011, more than 10% of all completed PE deals in the state have been in the IT industry, according to the PitchBook Platform, trailing B2B (36%), energy (25%) and B2C (12%) in frequency.
The divide is clear, too, in the list of the state’s top investors, which includes firms with an energy focus and also more general-purpose PE shops. Here are the GPs most actively investing in Texas-based companies since the start of 2011, including add-ons: