Telecommunications Acquisitions in 2018

Momentum Telecom acquired CloudNet Group, a Phoenix-based communications provider, to strengthen its cloud voice and unified communications market share and broaden its solution portfolio with offerings such as SD-WAN, contact center and vertical go-to-market capabilities. Terms were not disclosed; Bradley Arant Boult Cummings served as legal counsel to Momentum and LoHi Merchant Bank was CloudNet Group’s exclusive investment banker.

Cable ONE (NYSE: CABO) entered into a definitive agreement to acquire Clearwave Communications, a facilities-based fiber network operator headquartered in Harrisburg, Illinois. The acquisition gives Cable ONE a dense regional fiber footprint and expands its business/enterprise services capabilities within its existing markets; Clearwave was majority-owned by funds affiliated with Stephens Capital Partners LLC.

Vista Equity Partners has agreed to acquire 100% of Starhome Mach from Fortissimo Capital and will merge the business with its existing portfolio company Telarix to create an end-to-end roaming and interconnect software provider for global telecommunications carriers. The combined company, to be headquartered in Vienna, Virginia and led by Telarix's CEO, will offer integrated solutions across roaming, clearing, settlement, routing and fraud prevention to carriers and MVNOs worldwide.

ZephyrTel, an ESW Capital software company focused on telecommunications solutions, has acquired Vasona Networks, a provider of mobile edge and network performance software for mobile operators. The deal strengthens ZephyrTel’s telco software portfolio and capabilities in mobile edge computing as part of its rapid build-out of a global telecommunications software group.

One Ring Networks completed the acquisition of Skyriver Communications, adding high-speed fixed wireless and fiber internet assets and expanding One Ring’s footprint into multiple California markets. The deal enables One Ring to offer hosted PBX, managed IT services and additional redundancy solutions to businesses across Los Angeles, Orange County, San Francisco, San Diego and Riverside/San Bernardino.

Bertram Capital partnered with BearCom's executive management team to acquire Garland, Texas-based BearCom from LKCM Headwater Investments. The private equity firm positioned the deal as a new platform investment to support a buy-and-build strategy, accelerate organic growth and enhance capabilities via Bertram Labs; BearCom operates dozens of branches across North America and serves thousands of commercial, industrial and government customers.

Enel has agreed to invest €150 million to acquire a 21% stake in Ufinet International, an independent fibre network operator headquartered in Madrid. Cinven will retain a 79% majority holding; the strategic partnership gives Ufinet additional capital and access to Enel's Latin American assets to accelerate FTTH, wholesale fibre deployment and M&A-driven expansion.

Ribbon Communications has signed an agreement to acquire Edgewater Networks, a provider of Network Edge Orchestration and SD-WAN/edge devices, for an aggregate purchase price of $110 million in cash, deferred payments and stock. The deal expands Ribbon’s core-to-edge portfolio (including SBCs, SD-WAN and analytics), is expected to be immediately accretive, and positions Ribbon as a market leader in enterprise Session Border Controllers and network edge orchestration.

Apax Partners has agreed to acquire 100% of Expereo from The Carlyle Group, with Expereo management retaining a stake and continuing to run the business. The deal will support Expereo's growth through product enhancement, complementary acquisitions and global go-to-market expansion; financial terms were not disclosed and the transaction is subject to regulatory approvals.

Cinven’s Sixth Fund has agreed to acquire Ufinet International, the international operations of Spanish fibre network operator Ufinet Group, for an undisclosed sum. The investment establishes Ufinet International as a platform for buy-and-build consolidation and further international expansion across Latin America, supporting continued network investment and growth.

Cinven's Fifth Fund has agreed to sell Ufinet Group, a Madrid-headquartered independent fibre network operator, to a consortium led by Antin Infrastructure Partners (acquiring Ufinet Spain) and Cinven's Sixth Fund (acquiring Ufinet International) for an undisclosed consideration. Ufinet operates ~66,800 km of fibre across two continents and employs roughly 1,020 people; Cinven said the transaction generates over €1.1 billion of capital gain and is expected to complete in July 2018.

Danish telematics company Trackunit has acquired UK-based telematics provider Satrak, which will continue operating from its Leeds base and be gradually transitioned to the Trackunit brand. The deal expands Trackunit's UK installed base (Satrak has ~23,000 vehicles on its platform) and strengthens the buyer's position in the European telematics market; financial terms were not disclosed.

Linx Partners has partnered with the management team of Clover Telecom to acquire Clover Telecom from Clover Technologies Group. Clover Telecom, based in the Dallas, Texas area, is a provider of telecom equipment distribution, testing/repair, out-of-warranty technical support and field services; financial terms were not disclosed.

Antin Infrastructure Partners has entered into an agreement to acquire FirstLight, a fiber-optic bandwidth infrastructure provider headquartered in Albany, New York, from Oak Hill Capital Partners IV. The acquisition, intended to accelerate FirstLight’s growth and enhance its service capabilities for enterprise and carrier customers across the Northeast, was expected to close in the second half of 2018; financial terms were not disclosed.