Stonepeak Infrastructure Partners has closed its acquisition of a controlling stake in Woodstock, New Brunswick-based Xplornet Communications, a rural-focused broadband service provider. No financial terms were disclosed. Xplornet was previously backed by Catalyst Investors, Sandler Capital Management and Werklund Family Office.
WOODSTOCK, NB, June 11, 2020 /CNW/ – Xplornet Communications Inc., Canada’s largest rural-focused broadband service provider, today announced the completion of its sale to Stonepeak Infrastructure Partners, whereby Stonepeak has acquired the controlling stake in Xplornet. The transaction has received all regulatory approvals and completed new financing for a fully capitalized business.
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.
Stonepeak is a North American focused infrastructure firm that manages $24.4 billion USD of assets for its investors (as of May 22, 2020). The firm has a strong track record of investing in mission-critical telecommunication businesses globally. Stonepeak is committed to supporting the existing Xplornet business plan. Allison Lenehan, the Chief Executive Officer, 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 Allison Lenehan, President and CEO of Xplornet.
“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,” said Lenehan.
Brian McMullen, Senior Managing Director and head of Stonepeak’s communications and digital infrastructure business added: “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.
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 to deploy state-of-the-art hybrid fibre wireless and satellite technology in its facilities-based network in order to deliver broadband services to rural Canadians. The completion of its sale to Stonepeak is one more step in making this promise a reality.
About Xplornet Communications Inc.
Headquartered in Woodstock, New Brunswick, Xplornet Communications Inc. is one of Canada’s leading broadband service providers. For over a decade, Xplornet has been providing innovative fixed and mobile broadband solutions to rural customers at work, home and play across Canada. Today, Xplornet offers voice and data communication services through its unique hybrid fibre wireless and satellite network that connects Canadians to what matters.
About Stonepeak Infrastructure Partners
Stonepeak Infrastructure Partners (www.stonepeakpartners.com) is an infrastructure-focused private equity firm headquartered in New York that manages $24.4 billion of assets for its investors (as of May 22, 2020). Stonepeak invests in long-lived, hard-asset businesses, and projects that provide essential services to customers and seeks to actively partner with high-quality management teams, facilitate operational improvements, and provide capital for growth initiatives.