Committed to staying, growing in CNY SALINA — Former CXtec and TERACAI Corp. CEO William Pomeroy “was very firm” in his commitment to finding the “right partner” to help the companies expand and grow jobs in Central New York. “That was … one of our top priorities in evaluating potential partners,” says Peter Belyea, who […]
Committed to staying, growing in CNY
SALINA — Former CXtec and TERACAI Corp. CEO William Pomeroy “was very firm” in his commitment to finding the “right partner” to help the companies expand and grow jobs in Central New York.
“That was … one of our top priorities in evaluating potential partners,” says Peter Belyea, who has succeeded Pomeroy in the CEO role for both firms.
Belyea spoke with CNYBJ on Aug. 30, one day after the company announced that an affiliate of a Miami, Florida–based investment firm had acquired a “majority interest” in CXtec and sister company TERACAI.
Pomeroy, CXtec founder and CEO, has retired, and Belyea, who has been serving both companies as president, assumes the CEO role, “effective immediately,” the company said in an Aug. 29 news release.
Belyea will also keep the company president title, he said in the CNYBJ interview. He has worked for the firms for more than 26 years in “various” leadership capacities.
CXtec is the is the d/b/a name of CABLExpress Corp.
The Florida firm, H.I.G. Capital, is a private equity and alternative-asset investment firm, has more than $20 billion of equity capital under management.
The transaction closed on Aug. 26, says Belyea. CXtec and TERACAI had been considering the possibility of a new majority owner for about 18 months, he adds.
“We evaluated many potential partners and H.I.G. aligned most tightly with our commitment to remaining in Central New York. That was a top priority for [Pomeroy],” says Belyea.
They also believe H.I.G. will help “grow the organization” in a way that would provide opportunity for current and future employees.
H.I.G.’s acquisition provides an “opportunity for growth and expansion,” according to the release
“H.I.G. sees [CXtec and TERACAI] as a tremendous platform for both organic and inorganic growth… We look forward to supporting the existing leadership team in its efforts to continue to grow the franchise,” Ricky Stokes, managing director at H.I.G. Capital, said.
“H.I.G. is focused on growth, both organically and inorganically. We see that as an exciting opportunity to expand into market adjacencies and to expand our portfolio products,” says Belyea.
When asked about specific plans for growth at both CXtec and TERACAI, Belyea would only say, “It’s a bit too early for us to articulate those publicly.”
CXtec and TERACAI “will remain” in Central New York, having secured a “long-term” lease for their Salina headquarters. They’ll also maintain their distribution facilities at 621 East Brighton Ave. in Syracuse and sales office in Rochester, the firm said.
The now-retired Pomeroy, who founded CXtec in 1978, will continue to serve on the board of directors and retain a minority ownership interest in both companies.
“After extensive discussions and review with my advisors over many months, I am confident that this direction will provide the greatest opportunity to take CXtec [and] TERACAI to the next level and facilitate their long-term growth in the [Central New York] community,” Pomeroy said in the release.
CXtec, which operates at 5404 South Bay Road in Salina, buys and sells used networking hardware, phones, and cabling. The company employs 225 people.
TERACAI, which spun off from CXtec in 2009, says it provides businesses with core-networking infrastructures, which enable virtualization, unified communications, and cloud applications. It operates at 217 Lawrence Road East in the town of Salina and employs 45 people.
Founded in 1993, H.I.G. has invested in and managed more than 200 companies worldwide, according to the release.
The firm’s current portfolio includes more than 100 companies with combined sales topping $30 billion.
Belyea declined to disclose specific revenue information for both CXtec and TERACAI.
Contact Reinhardt at ereinhardt@cnybj.com