Telecommunications Acquisitions in 2019

Chicago-based NTI Connect LLC (PE-backed by ORIX Capital Partners) has acquired Vertical Communications Inc. (VERTICOM), a Dallas-based broadband network engineering and deployment company. The add-on expands NTI's wireless and fiber deployment capabilities and scales its operations across the South-Central United States.

Equistone-backed WHP Telecoms has completed the acquisition of Sitec Infrastructure Services Ltd, bringing together two UK telecoms infrastructure businesses to broaden WHP's service capabilities and provide entry into the fibre market. The combined group will have turnover in excess of £100m and around 500 employees, and the deal is WHP's first acquisition since its 2018 Equistone-backed management buyout.

Connect Bidco Limited, an acquisition vehicle owned by a consortium of funds advised by Apax Partners and Warburg Pincus together with the Canada Pension Plan Investment Board and Ontario Teachers’ Pension Plan Board, completed a recommended cash offer to acquire all issued ordinary share capital of Inmarsat. The consortium said the investment will support Inmarsat’s market leadership in maritime, aviation and defence communications and help the company capitalise on in-flight connectivity and Internet of Things opportunities.

EQT Infrastructure announced plans to combine its portfolio companies IP-Only and GlobalConnect to create a leading Northern European fiber-based datacom and cloud-enabling infrastructure provider. The merger creates scale across Sweden, Denmark, Norway and Northern Germany — combining roughly 58,000 km of fiber, ~18,000 sqm of data center capacity, more than 1,500 employees and combined 2018 revenues of ~EUR 520 million to accelerate network rollout, innovation and cross-border services for B2B, B2C and public customers.

Equistone Partners Europe has agreed to acquire Amadys NV, a Brussels-headquartered provider and distributor of passive network equipment for utilities and telecoms, from the company's management and Vectis Private Equity. Management, led by CEO Hein Wilderjans, will reinvest and retain a minority stake; Equistone plans to support organic growth and use Amadys as a platform for consolidation and international expansion. The deal is subject to competition clearance and financial terms were not disclosed.

ONCAP, the mid-market private equity platform of Onex Corporation, partnered with Enertech's management team to acquire Enertech Holdings LLC from Tower Arch Capital. Enertech, headquartered in New Braunfels, Texas, is a provider of wireless infrastructure services with more than 470 employees across 14 U.S. facilities; ONCAP plans to grow the business through acquisitions and organic expansion.

Digital Colony Partners, the digital infrastructure investment platform of Colony Capital, has acquired Beanfield Technologies Inc., an independent fiber and bandwidth provider in Canada. The acquisition expands Digital Colony's fiber footprint in Toronto and Montreal—adding hundreds of route kilometers, tens of thousands of strand kilometers and over 500 on-net locations—to serve enterprise, carrier (MNO) and data center customers. Financial terms were not disclosed.

Yielder Group has added Televak Centers to its Connectivity Factory business unit as of November 7. The move brings Televak's 20+ years of telecom and ICT support expertise (including fixed-network and cloud solutions) into Yielder's portfolio to strengthen its B2B telecom and ICT reseller offering.

KKR has acquired a majority stake in Hyperoptic Ltd, the UK’s largest residential gigabit full-fibre broadband provider, from funds managed by Newlight Partners LP and Mubadala Investment Company. The investment by KKR is intended to support Hyperoptic’s national roll-out and aggressive network expansion to reach millions of homes over the coming years.

QualTek, a Brightstar Capital Partners portfolio company, has acquired Vinculums Services, a telecom infrastructure services provider based in Irvine, California. The add-on expands QualTek's wireless services capabilities and provides a platform to support significant 5G roll-out and related site development across the Western United States.

EQT Infrastructure (EQT Infrastructure IV) agreed to acquire inexio Beteiligungs GmbH & Co. KGaA from Warburg Pincus, Deutsche Beteiligungs AG, the founders and several minority investors. The investment will support inexio's large-scale FTTH rollout and expansion of its fiber-optic network across rural and suburban Germany, with a stated commitment to connect 2 million households by 2030.

Funds advised by Castik Capital acquired a majority of AddSecure from Abry Partners, with Abry retaining a minority stake and AddSecure management reinvesting. Castik will partner with AddSecure's management to accelerate the company's organic and acquisitive growth across Europe; financial terms were not disclosed.

NVM Private Equity (via its Vintage III LP fund) has completed a management buy-out of Mobius Networks Limited, a Leicestershire‑headquartered MVNO providing IoT and M2M data connectivity across healthcare, transport and retail markets. The investment will back management to accelerate growth and expand Mobius' software and sales capabilities while supporting its mission‑critical, high‑uptime connectivity proposition.

Comcast Corporation has acquired Rotterdam-based OTT middleware provider Metrological Group BV to strengthen its OTT video and app integration capabilities. Digital Capital Advisors served as exclusive financial advisor to Metrological and its shareholders; the deal brings Metrological's platform (which reaches over 40 million households) and team into Comcast to enhance aggregation and integration of third-party SVODs onto Comcast's X1 platform.

Galaxy Next Generation (OTCQB: GAXY) has closed its acquisition of Interlock Concepts, a west-coast audio and notification-systems company, in a combination cash-and-stock deal. Interlock Concepts generated approximately $4.0 million in revenue for the 12 months ended June 30, 2019, and provides intercom, notification and classroom audio products and the Phoenix software suite focused on K‑12 school communication and safety.

Washington, D.C.-based private equity firm Grain Management has acquired a majority interest in Hunter Communications, a regional fiber-optic network operator serving southern Oregon and parts of northern California. The deal (terms undisclosed) will support Hunter's network densification and footprint expansion as the company prepares for growth under Grain's ownership.

Hargray Communications, a regional telecommunications operator based in Hilton Head Island, South Carolina, has agreed to acquire Kings Bay Communications, Inc. (operating as Kingsland Cable), a locally owned internet and cable TV provider based in Kingsland, Georgia. Hargray said it will invest in the Kingsland network to deliver next-generation services (including 1 Gbps internet and Hargray TV), integrate billing and network systems, and continue serving both residential and business customers; the seller was Don Trednick and his family after 41 years of ownership.

Grain Management signed a definitive agreement to acquire a majority stake in Ritter Communications from E. Ritter and Company, with the Ritter family retaining board positions. The investment will support accelerated growth and fiber network expansion across Ritter's service area; the deal is subject to customary regulatory approvals and was expected to close in Q4 2019 (financial terms not disclosed).

Network Innovations Inc. has acquired San Diego-based Field Intelligence, Inc., combining Field Intell's smart IoT monitoring and M2M expertise with NI's global connectivity and field service capabilities. The acquisition expands NI's remote monitoring and control solutions for customers in equipment rental and industrial end markets (oil & gas, mining, agriculture), enabling broader global coverage and improved operational performance.

LDC, alongside credit funds managed by an affiliate of Ares Management, has provided a £100 million financing package to Onecom to support organic growth and acquisitive expansion. Onecom, headquartered in Fareham, Hampshire, serves nearly 100,000 business customers across fixed-line voice, connectivity and cloud services and employs around 400 people; the funding will be used to scale the team, upgrade systems and pursue acquisitions.

Protel Communications Inc., a California-based enterprise communications and IT services provider, has acquired Commpedia, a San Marcos-based reseller of Mitel/ShoreTel communications, AV, structured cabling and security products. The acquisition expands Protel’s product and service capabilities and broadens its customer footprint across California (and supports its broader regional expansion efforts).

G3 Comms has merged with Connect Managed Services in a deal that results in a combined UK customer experience and unified communications group with revenues above £55 million. The transaction represents LDC’s exit from its investment in Connect, and the combined group will be led by Connect CEO Alex Tupman to expand scale and capabilities across managed contact centre and unified communications services.

Nuts Groep B.V. has acquired mobile telecom provider Robin Mobile Holding B.V. from Ramphastos Investments and Robin Mobile founder Wilfred Rottier. The undisclosed deal adds mobile services (an MVNO) to Nuts Groep's energy, fixed-telecom and internet portfolio as part of its strategy to broaden products and services across the Benelux.

Wireless Logic Group has acquired SIMPoint, an Eindhoven-based IoT/M2M connectivity specialist founded in 2012, to strengthen its connectivity solutions and expand its European footprint. The deal, undisclosed in value, brings SIMPoint’s customizable SIM and IoT management capabilities and a customer base of over 4,000 into the Wireless Logic platform, which is backed by Montagu Private Equity.

The EQT Infrastructure IV fund has agreed to acquire IP-Only from EQT Mid Market and EQT Mid Market Europe funds for an enterprise value of SEK 18,250 million plus an earn-out of up to SEK 1,000 million. IP-Only owns and operates ~16,000 km of fiber network across Sweden and provides wholesale fiber access, enterprise connectivity and co-location data center services; the transaction is expected to close in June 2019.

Francisco Partners, with co-investor IGP Capital, has acquired a majority stake in LiveU from its existing shareholders to accelerate the company's global expansion. LiveU, headquartered in Hackensack, New Jersey, provides live IP video devices and cloud services to broadcasters, sports organizations and digital media platforms; previous investors named include Canaan Partners, Viola Ventures, Pitango and Lightspeed.

AFL (a Fujikura subsidiary) has purchased a majority stake in ITC Service Group, a Sacramento-based provider of fiber optic network services, outside plant, wireless and workforce solutions. ITC will continue operating under its name with roughly 600 employees; affiliates of Moorgate Capital Partners and Tim Sauer will remain shareholders and Jim Rush was named ITC president.

EQT Infrastructure IV has signed an agreement to acquire Melita Limited from Apax Partners and Fortino Capital. EQT plans to support Melita's growth by upgrading its fixed and mobile networks, expanding data center capacity in Malta, and backing Melita's internationalization including expansion into Italy.

Horizon-backed Wireless Innovation Group has acquired Ground Control Systems Inc., a California-based provider of IoT/M2M connectivity and hardware founded in 2002. The add-on deal expands Wireless Innovation’s North American capabilities and scale, supporting the Group’s strategy to broaden its global connectivity offering.

Great Plains Communications, a Grain Management portfolio company, has acquired InterCarrier Networks, a regional fiber-optic carrier headquartered in St. Louis, Missouri. The deal adds roughly 2,037 route miles of fiber across Illinois, Indiana, the St. Louis metro and Kentucky to Great Plains’ network; financial terms were not disclosed and the transaction closed in August 2019.

Y-COM Holdings, a portfolio company of Cotton Creek Capital, has acquired General Utility Construction, Inc. (GUCI), a Florida-based provider of aerial and underground cable and fiber construction. The acquisition expands Y-COM's service capabilities and footprint in Florida, bringing Y-COM to nine operating locations statewide while GUCI's existing leadership team will remain in place.

Hargray Fiber has closed its acquisition of Dark Fiber Systems, a Jacksonville, Florida-based dark fiber provider, expanding Hargray's southeastern fiber network. The deal brings DFS employees into Hargray and enables Hargray to offer its full suite of communications services to Jacksonville carriers and businesses.

Momentum Telecom, an Atlanta-based cloud communications provider, has agreed to acquire Cleveland-headquartered DCT Telecom Group, a provider of cloud voice and network solutions. The deal expands Momentum's geographic presence and enterprise customer base while adding complementary managed broadband, internet and cloud voice capabilities to its platform; terms were not disclosed.

Funds managed by SDC Capital Partners, LLC will invest up to $100 million in telecommunications infrastructure services firm Tilson to support nationwide network design-build growth and to enable the spin-out and capitalization of Tilson’s asset-ownership affiliate SQF, LLC. The capital will accelerate Tilson’s expansion in small-cell and 5G infrastructure deployment and strengthen its asset ownership capabilities through SQF.

American Tower Corporation has acquired Colo Atl, a carrier‑neutral colocation and interconnection provider based in downtown Atlanta. The acquisition expands American Tower's communications real estate capabilities in the Southeast by adding a strategically located data center hub that serves cloud providers and network operators.

Hargray Communications has closed the acquisition of the Alabama assets of USA Communications, expanding the company's network to serve Pell City and surrounding areas. The deal transfers local residential and commercial broadband, TV and phone services to Hargray as it integrates the network and billing systems to enhance service offerings in the southeastern United States.

QualTek has acquired Vertical Limit LLC to expand its Midwest presence and capabilities in wireless infrastructure services. The acquisition brings Vertical Limit's Midwest footprint and experienced team into QualTek's national turnkey telecommunications and power services platform.

KLH Capital has partnered with the management team of ElectriCom, LLC to complete a recapitalization of the business. ElectriCom, founded in 1960, is a utility construction contractor providing aerial, underground, wireless and right-of-way installation and maintenance services to telecommunications and utility customers across the U.S.; KLH said it will support the company's continued growth and geographic expansion.

Boston-based private equity firm M/C Partners has acquired Connectivity Wireless Solutions and its subsidiaries (including Simplifi DAS Holdings) and will consolidate the business with its portfolio company Neutral Connect Networks. The deal creates a larger neutral-host and in‑building wireless platform to accelerate growth in managed Wi‑Fi, CBRS/private LTE and 5G deployments; Stephen Bye will serve as CEO of the combined business and Connectivity founder Greg Jacobs will join the board.

Telrite Holdings has acquired Locus Telecommunications and its H2O Wireless brand following FCC approval, positioning Telrite as a leading prepaid mobile virtual network operator (MVNO). Locus will continue operating from its Fort Lee, New Jersey base with roughly 200 employees, while customers and distributors gain access to Telrite's expanded offerings and operational infrastructure.

Centerline Communications LLC, a PE-backed provider of wireless telecommunications infrastructure services, has acquired Notora, LLC, an Atlanta-based RF engineering firm that specializes in DAS and small cell design, testing and commissioning. Notora will operate as a wholly owned subsidiary under the Centerline platform, with its executive team remaining in place to expand Centerline's in‑building and small cell capabilities.

Tower Engineering Professionals (TEP), backed by Prairie Capital V, acquired Utilis Engineering to expand TEP’s capabilities into fiber-optic and small-cell engineering, strengthening its telecom engineering, maintenance, inspection and site-acquisition services. The deal is an add-on to TEP’s national platform and is intended to accelerate service-line expansion, broaden channel reach, and create cross-selling opportunities between the businesses.

Luna Innovations Incorporated acquired General Photonics Corporation, a Chino, California-based provider of polarization management components, modules and optical test equipment, for $20 million (including up to $1 million earnout). The purchase expands Luna's Lightwave division and strengthens its communications test product portfolio by adding complementary measurement and polarization control capabilities and vertical integration synergies.

Sentinel Capital Partners has acquired Mobile Communications America (MCA) from WJ Partners. MCA, headquartered in Spartanburg, South Carolina, is a leading provider of mission-critical communications solutions and services with more than 500 employees and 41 service locations across seven Southeastern states; Sentinel intends to support continued acquisitive and organic growth.

Wireless Logic Group has acquired Netherlands-based M2MBlue, an Enschede-founded provider of hybrid cellular, satellite and land connectivity solutions for IoT and M2M applications. The deal—terms undisclosed—adds maritime, transport and in-vehicle high-data solutions to Wireless Logic's European connectivity platform and is an add-on to the Montagu-backed Wireless Logic Group.

Comstar Technologies, a portfolio company of Wincove Private Holdings, has acquired northern Virginia-based E-Tel Systems Corporation. The add-on strengthens Comstar's technology and telecommunications presence in the Washington D.C. metro area and supports the founder's retirement and customer continuity.

Funds managed by SDC Capital Partners have acquired a majority interest in Summit Infrastructure Group (SummitIG) in a majority recapitalization. Columbia Capital retains a material ownership stake; the transaction provides SummitIG with additional capital and operational support to accelerate expansion of its dark fiber network in Virginia and into new markets.

Vast Broadband has acquired NTS Communications from private equity owner Tower Three Partners, adding NTS's fiber network in Texas and Louisiana to Vast's footprint. Oak Hill Capital Partners and Pamlico Capital led a recapitalization of Vast to support accelerated growth and will provide financial backing following the transaction.

RouteTrust, an Austin-based telecommunications software provider, acquired RTX Solutions, LLC in January 2019. The deal (terms undisclosed) is intended to expand RouteTrust’s product offerings and accelerate capabilities in cloud-based telecom routing, switching and management solutions.

Trive Capital, a Dallas-based private equity firm, has acquired EarthLink, LLC from Windstream Holdings and also purchased the assets of nQue Technologies LLC. Trive says it will partner with the existing EarthLink and nQue management teams to invest in products and grow EarthLink's consumer and small-business connectivity, hosting, and privacy/security offerings.