EQT’s Infrastructure III fund is to sell Segra’s Commercial Services Business to Cox Communications (Cox). EQT Infrastructure will retain Segra’s residential and SMB business, which operates under the Lumos Networks and NorthState brands.
Headquartered in Charlotte, North Carolina, Segra employs more than 1,200 people and provides broadband data services across a 26,000-mile fibre network to a variety of customers including wireless carriers, healthcare providers, local government agencies, financial institutions, education institutions, and residential customers. Ongoing digitalisation and outsourcing trends are driving demand for broadband services, particularly in rapidly growing US metro markets such as the ones Segra serves. Together with the management team, EQT supported Segra in its organic and inorganic growth strategies and integration success to develop into the leading super regional fibre company it is today.
At the same time, EQT and the management team scaled Segra’s residential and SMB business by building out fibre to existing and new customers as well as through strategic add-on acquisitions. Following the transaction, EQT plans to significantly accelerate the build-out of fibre-to-the-premise (FTTP) throughout the region, bringing high speed fibre bandwidth for the first time to a large number of markets, many of which to date, have been disadvantaged by no or low availability of quality high speed broadband connectivity.
“We are pleased to have found a good long-term home for Segra’s Commercial Services Business with Cox. Segra has transformed into an integrated, leading provider of broadband services to a variety of enterprise and carrier customers, and we are proud of the achievements we have accomplished alongside management. We thank Tim, the management team and employees, and the advisors in the EQT Network for their vision and guidance,” said Jan Vesely, Partner and Investment Advisor at EQT. “Furthermore, we are excited to retain the residential business and to accelerate the buildout of fibre to residential and SMB customers, bringing fibre to many underserved markets.”
Timothy Biltz, CEO of Segra, says: “EQT has been a great partner throughout Segra’s transformational journey, and we thank them for their guidance and support for nearly four years. Going forward, we are excited to work with Cox and look forward to leveraging their resources, capabilities and strategic insights to meet growing customer demand and accelerate long-term growth.”
The transaction is subject to customary conditions and approvals and is expected to close later in 2021.
Bank Street Group LLC and Goldman Sachs & Co. LLC acted as financial advisors and Simpson Thacher & Bartlett LLP acted as legal advisor to Segra.
