Crown Capital Partners (Crown), a capital partner to entrepreneurs and growth businesses, is to acquire WireIE Holdings International (WireIE), an Ontario-based network operator that specialises in the deployment and management of carrier-grade data networks across Canada and internationally to underserved communities.
Pursuant to the Transaction, Crown has acquired all the debt and equity of WireIE for a nominal amount on closing and a performance-based earn-out payment of up to CAD5 million. Crown had previously provided an income streaming facility to WireIE in July 2018 to support the company’s expansion. Crown has invested CAD7.6 million to date and will provide additional capital as required to fund future growth.
“WireIE generates high-quality, recurring cash flows through the development of carrier-grade data networks,” says Chris Johnson, President & CEO of Crown. “We’re delighted to expand our relationship with WireIE and welcome it to the Crown platform. The data network industry is rapidly growing and capital-intensive, and we view this industry as a new avenue for revenue growth and diversification for Crown, building on our special situations and power segments. In addition to direct investments such as WireIE, there is an opportunity to develop a third-party fund targeting this market.”
The WireIE executive team will remain in place to direct the continued growth of the company, led by its founder, President & CEO, Rob Barlow.
“Crown is a highly experienced, well-established specialty finance company, and this new ownership structure will enhance our ability to access capital to expand geographically, while continuing to deliver trusted, reliable, secure and certified networks to underserved enterprises and communities,” says Rob Barlow. “This is an exciting new chapter for WireIE.”
