WOODSTOCK, N.B. – National rural broadband provider and Manitoba mobile wireless company Xplornet Communications today announced the completion of its sale to Stonepeak Infrastructure Partners. The transaction has received all regulatory approvals and completed new financing for a fully capitalized business, said the press release.
The deal has been valued at $2.2 billion.
“Today’s announcement empowers Xplornet to execute its plan of accelerating investment in its national hybrid fibre wireless and satellite broadband network for rural Canadians. Xplornet has fresh new capital for a strong balance sheet, a new owner with the same conviction to the company’s mission as its employees, and a renewed sense of purpose on improving broadband services for rural Canadian homes and businesses,” reads the announcement.
New York-based Stonepeak manages US$24.4 billion of assets for its investors and describes its investing style as “a conservative yet opportunistic approach to infrastructure investing. Stonepeak invests in businesses comprised of hard assets with leading market positions primarily in the following sectors: Energy, Power and Renewables, Transportation, Utilities, Water and Communications.”
The release said Stonepeak is committed to supporting the existing Xplornet business plan and that CEO Allison Lenehan and the current executive team will continue leading Xplornet – and the company will remain headquartered in New Brunswick.
“We are thrilled to complete our sale to Stonepeak and begin the next chapter of Xplornet. Rural Canadians deserve world-class broadband and we are fixated on delivering for them. We know there is more work to do,” said Lenehan in the release.
“This deal will enable Xplornet to expand coverage, increase investment, and accelerate improvements to our broadband network. For our customers, this means unprecedented speeds, unlimited data plans, and 5G services at affordable prices. Rural Canadians deserve access to the same quality of broadband as in urban Canada. It is time to go faster.”
“We are delighted to partner with Allison and the Xplornet team to build upon the premier broadband provider they have established. In an increasingly digital society, we believe there is an opportunity to deliver faster speeds and greater coverage, supporting the ability to work from home, distance learning, more connected devices and shifting entertainment mediums. We look forward to continuing to invest in the company’s network infrastructure and service capabilities to support an exceptional broadband proposition,” said Brian McMullen, senior managing director and head of Stonepeak’s communications and digital infrastructure business.
Today’s announcement builds on the investments in fibre and 5G wireless technology already made by Xplornet throughout Canada. In 2019, Xplornet announced that it will invest $500 million over the next five years.
www.xplornet.com
www.stonepeakpartners.com
