Houlihan Lokey Advises TXO Systems

Houlihan Lokey is pleased to announce that TXO Systems, Ltd. (TXO), a leading provider of critical telecom network hardware and asset management services, has been acquired by TowerBrook Delta (TowerBrook), an affiliate of global private equity firm TowerBrook Capital Partners. Houlihan Lokey served as the exclusive financial advisor to the TXO shareholders. The transaction closed on 20 June 2023.

Headquartered in Chepstow, UK, TXO has physical presence in Continental Europe, North America, South America, and Australia and is able to service customers globally. The company operates four primary lines of business: (1) telecom hardware sourcing, recovery, and resale; (2) support solutions and services for telecom operators and critical communications clients including testing, repair, infrastructure decommissioning, warehousing and inventory management, and logistics; (3) recycling of telecom equipment and precious metal recovery; and (4) distribution of complementary multi-vendor compatible accessories. TXO is differentiated through its ability to address customers’ pain points on the back of its capacity to aggregate market supply and offer a large and diverse breadth of inventory.

TowerBrook has been actively pursuing a thesis in the circular economy. The team has been seeking to build a leader in IT asset disposition and asset management (a practice built around reusing, recycling, repurposing, repairing, or disposing of unwanted equipment in a safe and environmentally responsible way) or re-commerce space with the ambition of contributing significantly to reducing the carbon footprint of the IT and telecommunications industry and supporting its commitment to a more circular model. The acquisition of TXO represents TowerBrook’s first investment from the impact-focused TowerBrook Delta fund.

TowerBrook said: “We are delighted to partner with the management team, led by CEO Darren Pearce, to continue their efforts to build TXO into one of the leading key services partners for network operators and OEMs, both organically and through strategic acquisitions.”

As part of the growth and value creation plan, TowerBrook further intends to support TXO’s ambitious business model transformation into a more sustainable and recurrent revenue-driven product-as-a-service provider, assist with the operational improvement of the business and accelerate TXO’s international expansion.

Houlihan Lokey served as the exclusive M&A and capital markets advisor to the TXO shareholders in a deal that exemplifies the continued success of the firm’s dedicated global coverage of the tech-enabled services sector.