Telecommunications Acquisitions in 2020

Bluebird Network acquired the ColoHub Data Center in Bettendorf, Iowa (effective December 31, 2020) from Geneseo Communications, expanding Bluebird’s Midwest data center footprint and complementing its underground facility in Springfield, Missouri. The deal strengthens Bluebird’s fiber and edge data center capabilities across Iowa and Illinois, providing additional low-latency and disaster recovery options for carriers and enterprise customers in the region.

M/C Partners, a Boston-based private equity firm, has acquired Bel Air Internet, LLC (BAI) and will combine it with AerioConnect and Metro Fiber to form a larger regional ISP serving the greater Los Angeles market. Bel Air Internet provides internet, voice and video services to over 800 multi-family and commercial buildings in Los Angeles; the deal is an add-on to expand the AerioConnect platform and accelerate MDU broadband growth in Southern California.

IntelliSite Corporation, a DFW Capital portfolio company, has acquired Broad Sky Networks and concurrently created a new holding company, EPIC IO Technologies, to hold both businesses. The deal combines IntelliSite’s IoT, AI-enabled edge computing and software capabilities with Broad Sky’s managed wireless and emerging 5G connectivity services to expand capability and market reach across public sector, healthcare, retail and manufacturing customers.

AerioConnect, backed by private equity firm M/C Partners, has acquired Metro Fiber LLC, a Los Angeles–based internet service provider serving multi-family residential (HOA) communities. The acquisition, which closed after M/C Partners' September 30, 2020 investment in Aerio, expands Aerio's customer base and depth in the greater Los Angeles broadband market.

Boston Omaha Corporation, through its wholly owned subsidiary FIF Utah LLC, has agreed to acquire substantially all of the assets of Utah Broadband, LLC for $21.6 million in cash plus a 20% membership interest in FIF Utah issued to Utah Broadband's CEO Steve McGhie. The transaction (expected to close within ~30 days subject to customary conditions) will leave Mr. McGhie with a 20% ownership stake and gives Boston Omaha an 80% initial stake as it plans significant capital investment to expand fiber-to-the-home service across the region.

Xplornet Communications Inc. has acquired Ocdotus Inc., which operates as Metro Loop, a fibre-to-the-premise provider serving Hamilton and Haldimand County in southern Ontario. The transaction transfers Metro Loop's customers and operations to Xplornet as the Metro Loop team (including its president) joins Xplornet to support expanded fibre deployments in rural Ontario.

Wilson Electronics has acquired SignalTeQ, the maker of the CellLinQ Meter + App, to integrate SignalTeQ's cellular site-surveying tools into Wilson's professional installation workflow. The purchase aims to streamline commercial installations of Wilson's cellular signal amplifiers, improving installation speed and reliability for integrators and enterprise customers.

Full Circle Fiber Partners, an affiliate of Mill Point Capital, has acquired MTC Engineering (which will operate as MTC Consulting LLC). The add-on expands Full Circle's fiber engineering and construction services capabilities and broadens the platform's geographic reach.

Equistone portfolio company Amadys has acquired Breda-based Infraconcepts B.V. in an add-on transaction to strengthen Amadys' presence in the Netherlands. The deal (subject to competition approval) expands Amadys' passive network equipment footprint across telecom and utility end markets; the combined group generates roughly EUR 180 million in revenue and employs about 140 people.

Wireless Logic has acquired New Line Mobile, an IoT/M2M managed services provider headquartered in The Hague, Netherlands. The deal (completed on 4 December) expands Wireless Logic’s Benelux footprint and adds local connectivity and managed-services capability to support system integrators, application providers and enterprise customers.

H.I.G. Capital's affiliate completed the acquisition of DSN Participações S.A. ("Desktop"), a leading B2C ISP in the state of São Paulo, Brazil. Desktop — founded in 1999 and serving more than 185,000 clients across 20 cities — will be used as a platform for a roll-up strategy to scale in an underpenetrated, fragmented regional market.

Telesat Canada reached an agreement with Loral Space & Communications and the Public Sector Pension Investment Board (PSP Investments) to form Telesat Corporation, a new publicly traded Canadian company. Under the transaction Telesat Canada and Loral will become subsidiaries of Telesat Corporation, which will list on the Nasdaq to provide access to public equity to support growth initiatives including Telesat's Low Earth Orbit (LEO) satellite network.

Donuts Inc. has entered into an agreement to acquire Afilias, Inc.'s registry business for an undisclosed sum; the deal (which excludes Afilias' mobile software and registrar businesses) was expected to close in Q4 2020 pending regulatory approvals. The acquisition combines Donuts' and Afilias' TLD registry platforms, DNS capabilities and cybersecurity expertise to strengthen digital identity, security and registry services for registrar partners and registrants.

Wavenet, the Beech Tree Private Equity–backed unified communications and cloud provider, has acquired Qubic Group Plc, a Hertfordshire-based specialist in cloud, voice and data, in a multi-million pound add-on transaction. The deal, funded by Beech Tree Private Equity with support from Ares Management, strengthens Wavenet's UK cloud and voice capabilities and continues its buy-and-build strategy under Beech Tree's ownership.

Wireless Logic, a Montagu-backed global IoT connectivity platform, acquired Datamobile AG on 19 November 2020 to strengthen its presence in the DACH region and broaden its European IoT capabilities. Datamobile AG — an IoT communications specialist serving sectors including food delivery and e-mobility — will remain led by CEO Gerald Wirtl and continue operating as part of the Wireless Logic group.

A consortium led by funds managed or advised by Cinven, KKR and Providence Equity (through Lorca Telecom Bidco SAU) has completed the acquisition of MASMOVIL IBERCOM, S.A., acquiring approximately 99.3% of the group's outstanding shares at a valuation of about €5.3 billion. The consortium said the deal will enable MASMOVIL to accelerate its investment strategy and pursue growth and projects to strengthen its position in the Spanish telecommunications market.

Investcorp-backed ABAX has acquired Automile, a Nordic telematics and IoT fleet-management provider, to strengthen ABAX’s telematics platform and scale its global footprint. The deal combines complementary telematics portfolios to create one of Europe’s largest telematics players by subscriptions and expands ABAX’s capability and geographic coverage.

Medicus IT, a healthcare-focused managed services provider based in Alpharetta, Georgia, has acquired Clear Choice Telephones, a unified communications and contact center solutions provider headquartered in Roswell, Georgia. The acquisition expands Medicus IT’s communications and contact-center capabilities to better serve healthcare and other business clients while maintaining continuity of the existing teams.

Wireless Logic, backed by Montagu, has acquired UK-based IoT connectivity provider Arkessa from private equity firm ECI Partners. The deal (completed Dec. 9) brings Arkessa’s ~50-strong team, eUICC capabilities and more than one million subscriptions into the Wireless Logic group to expand routes-to-market and technical capability in IoT/M2M connectivity.

Infobip has entered into a definitive agreement to acquire OpenMarket from Amdocs for approximately $300 million. The deal combines OpenMarket's U.S. mobile messaging scale with Infobip's global footprint, creating a cloud communications player with a combined revenue run-rate above $1 billion and the ability to process more than 14 billion customer interactions per month.

Onecom, the LDC-backed UK business telecommunications provider, has acquired Sunderland-headquartered Nice Network in an undisclosed deal as an add‑on to its buy-and-build strategy. The acquisition strengthens Onecom’s presence in the North East of England and provides additional scale and cross-selling opportunities across mobile, hosted voice, connectivity and cybersecurity services.

SmartWave Technologies, a portfolio company of Northlane Capital Partners, has acquired Multi‑Tech Systems, Inc., a global supplier of industrial communications devices and services. The deal combines SmartWave's short‑range wireless and sensor expertise with MultiTech's long‑range wireless (LoRaWAN, LTE) product portfolio to create an integrated, end‑to‑end IoT solutions provider operating under the MultiTech brand.

McCarthy Capital Fund VII completed a substantial minority growth investment in Smartlink, a national provider of asset inventory, network services, network real estate and IT staffing for the wireless infrastructure sector. The capital will support Smartlink’s expansion of services and geographic growth across the United States.

Oak Hill Capital has entered into a definitive agreement to form a partnership with Race Communications, a family-owned fiber-to-the-premises operator, to accelerate expansion of Race’s fiber network across California. The deal (subject to customary regulatory approvals) will support Race’s plans to extend high-speed fiber-to-the-home services to additional unserved and underserved communities while Race’s management team remains in place.

Congruex, the Crestview Partners‑backed telecom engineering and construction platform, has acquired True North Management Services, a St. Louis‑based regional wireless infrastructure services provider. The add‑on expands Congruex’s Midwest footprint and broadens its offerings into wireless small cell, tower construction, maintenance and emergency response services; financial terms were not disclosed.

Luna Innovations Inc. acquired Maryland-based New Ridge Technologies LLC on November 2, 2020, adding advanced fiber-optic test and measurement equipment and optical subsystems to Luna's communications test portfolio. Founder and CEO Dr. Henry Yaffe will join Luna as Vice President of Technology for the Communications Test business unit, supporting Luna's capability expansion into polarization control, polarimetry and optical spectral analysis for telecom, 5G and datacenter customers.

Stonepeak Infrastructure Partners agreed to acquire Astound Broadband (RCN, Grande, Wave, enTouch) from TPG Capital and Patriot Media Management for $8.1 billion. Stonepeak will partner with the Astound management team (Patriot Media) to invest in network expansion and technology upgrades; the deal was expected to close in Q2 2021 subject to customary approvals.

MOTIVE, a provider of infrastructure, telecommunications and energy solutions based in Corona, California, acquired AWS Communications effective November 1, 2020. The acquisition adds AWS's Austin-based OSP/ISP design and construction capabilities and new locations (Austin, Dallas/Ft. Worth, Colorado Springs and Tampa), expanding MOTIVE’s geographic footprint coast-to-coast and bringing the combined company to about 600 employees.

Affiliates of Newlight Partners LP have made an undisclosed equity investment in Sail Internet, a San Francisco Bay Area fiber- and wireless-based high-speed internet provider. The capital will support Sail’s network expansion across the Bay Area and enable growth through organic initiatives and potential strategic acquisitions; existing investors including Ulu Ventures, Engineering Capital and Better Ventures are maintaining their stakes.

Comlinkdata, a Boston-based telecom market analytics firm backed by Alpine Investors, has acquired ShareTracker, a U.S.-based telecom research and analytics company. The acquisition expands Comlinkdata's data and analytics capabilities to provide broader, real-time telecom insights to network operators, handset OEMs, and other industry customers.

DartPoints, a Dallas-based owner and operator of edge colocation data centers, has acquired Metro Data Centers (MDC), a carrier-neutral data center provider in Dublin, Ohio. The acquisition expands DartPoints' regional footprint and adds over 22,000 square feet of colocation and carrier-neutral interconnection capacity to support cloud and content service providers in Central Ohio.

GTCR has agreed to acquire a majority interest in Consumer Cellular, the U.S. wireless provider focused on customers 50+, in a transaction expected to close by the end of 2020. Founder and CEO John Marick will retire but remain a board member and shareholder; GTCR said it will invest to continue the company’s growth while Consumer Cellular retains its offices and nearly 2,000 employees.

GeoLinks, a Camarillo, California-based fixed wireless and CLEC provider, has received a significant minority investment from a group led by Rock Mountain Capital. The growth capital will fund accelerated network expansion, support strategic acquisitions and streamline internal growth and operations as GeoLinks scales its ClearFiber+ deployment and broader coverage.

Brightstar Capital Partners (BCP) completed the acquisition of a 75% majority stake in Brightstar Corp., partnering with Brightstar’s senior management team. SoftBank Group Corp., the prior owner, will retain a 25% minority stake; BCP said it will help accelerate Brightstar’s growth in device protection, warranty, trade-in and supply chain solutions.

Cogeco Connexion, a Canadian subsidiary of Cogeco Communications Inc., has entered into a definitive agreement to acquire DERYtelecom for $405 million. DERYtelecom — based in Saguenay, Quebec — serves roughly 100,000 customers across 200+ municipalities and reported estimated FY2020 revenue of $105 million and adjusted EBITDA of $44 million; the deal is expected to close by Q2 FY2021 subject to regulatory approvals.

Verizon Communications has signed an agreement to acquire certain assets of Bluegrass Cellular, a rural wireless operator serving central Kentucky with roughly 210,000 customers across 34 counties. The transaction—subject to FCC approval—is intended to expand Verizon's footprint in Kentucky and will transition Bluegrass customers and employees to Verizon; closing was expected late 2020 or early 2021.

GI Partners, in partnership with industry veteran Rich Fish, has signed an agreement to acquire Vast Broadband, a Sioux Falls-based provider of gigabit broadband, video and phone services. Vast, currently owned by Pamlico Capital and Oak Hill Capital and serving over 60,000 residential and business customers across South Dakota and Minnesota, will be led by Rich Fish as incoming CEO with GI Partners investing from its Data Infrastructure Fund; the transaction remains subject to customary closing conditions and regulatory approvals.

I Squared Capital agreed to acquire GTT Communications' infrastructure division for $2.15 billion. The sale transfers a global fiber network, transatlantic subsea cables and data center/colocation assets to I Squared (later relaunched as EXA Infrastructure), allowing GTT to refocus on its capex‑light cloud networking business.

Funds managed by SDC Capital Partners acquired a minority interest in Bandwidth Infrastructure Group, providing growth capital to support expansion of the company’s dark fiber network across Northern California and Greater Atlanta. Columbia Capital will remain the majority shareholder following the transaction. Bandwidth IG, founded in 2019 and headquartered in San Jose, California, supplies underground dark fiber connectivity to data centers, hyperscalers and enterprises.

EQT Infrastructure V has agreed to co-invest alongside EQT Infrastructure IV in Deutsche Glasfaser, acquiring a roughly 12% stake post-close. The investment will support Deutsche Glasfaser's large-scale fiber-to-the-home roll-out in rural Germany and is expected to close in Q4 2020.

Funds managed by SDC Capital Partners have acquired a 48% interest in ALLO Communications, with Nelnet retaining a 45% stake and ALLO management holding 7%. The investment provides capital and new third‑party debt financing to support ALLO's expansion of its all‑fiber network across additional Midwestern communities.

Comstar Technologies, a West Chester, Pennsylvania-based provider of telecommunications, managed IT, physical security, and audio-visual solutions, has acquired Comtel VoIP, Inc., a Tonawanda, New York-based hosted telephony provider. The acquisition expands Comstar's footprint in Pennsylvania and Western New York and broadens Comtel's solution portfolio beyond voice while keeping Comtel operating under its current name.

Beanfield Metroconnect has acquired Toronto-based Epik Networks, a telecommunications provider that serves roughly 200 Canadian business clients across Toronto, Montreal and Vancouver. The acquisition expands Beanfield’s business communications and managed connectivity offerings and broadens its customer base across major Canadian markets.

Stonecourt Capital LP has acquired 365 Data Centers, a provider of hybrid data center and edge colocation solutions, with original investors Lumerity Capital and Longboat Advisors reinvesting alongside the new partner. 365's management team, led by CEO Bob DeSantis, will remain in place as Stonecourt provides capital to accelerate organic growth and pursue near-term acquisitions.

Watch Communications has acquired West Central Ohio Internet Link (WCOIL), a Lima, Ohio-based ISP that serves more than 2,000 customers and provides broadband, business phone, managed IT, security and cybersecurity services. The purchase expands Watch Communications’ footprint in central Ohio and adds WCOIL’s service capabilities and local team to Watch’s rural-focused broadband platform.

Xplornet Communications Inc. has completed the acquisition of Corridor Communications Inc., which operates CCI Wireless, expanding Xplornet’s operational presence across western Canada. The deal will deepen Xplornet’s rural broadband footprint in Alberta, Manitoba and Saskatchewan while retaining CCI Wireless’ team and network assets to accelerate delivery of higher-speed and affordable services to rural communities.

Enea Software AB has acquired Aptilo Holding AB from Norvestor V, L.P. and Norvestor V SBS, L.P. The acquisition adds Aptilo’s carrier-class policy and access control solutions for carrier Wi‑Fi and IoT to Enea’s telecom and cybersecurity product portfolio, strengthening Enea’s offerings for 5G, Wi‑Fi 6 and SaaS-based service management.

M/C Partners, a Boston-based private equity firm focused on communications and IT services, completed the acquisition of AerioConnect, LLC, a Los Angeles-based ISP serving multi‑family and commercial buildings, on September 30, 2020. M/C intends to build Aerio into a platform for residential and commercial broadband in the greater Los Angeles market, investing in products and services and pursuing geographic expansion and additional acquisitions.

Juniper Networks entered into a definitive agreement to acquire Netrounds, a programmable, software-based active test and service-assurance platform, to enhance Juniper’s automated WAN and service assurance capabilities for service providers. The acquisition, announced Sept. 28, 2020, is expected to close in Q4 2020 and aims to simplify operations and ensure higher quality of experience for end users across 5G, SD-WAN and hybrid-cloud environments.

Mavenir has acquired ip.access Ltd, a Cambridge-based small cell solutions provider, to extend its OpenRAN radio portfolio with multi‑radio (2G/3G/4G/5G) capabilities and enterprise private network solutions (including CBRS/OnGo). ip.access will operate as a business unit within Mavenir's Emerging Business group to drive end‑to‑end propositions across CSPs, enterprise private networks and nontraditional networks (aviation, maritime, rural).