BCI, CPPIB and PSP participate in deal to form new internet-service provider
Searchlight Capital Partners, along with several Canadian pension investors, is acquiring the U.S. Northwest operations and assets of internet and telephone services provider Frontier Communications, forming a new company called Ziply Fiber.
First announced in May 2019, Searchlight Capital has now completed the acquisition along with the British Columbia Investment Management Corp., the Canada Pension Plan Investment Board, the Public Sector Pension Investment Board and Wave Division Capital as its partners.
“This group of investors not only provides long-term capital, they also bring strategic and operational expertise that will help us deliver on our mission to bring better internet to our customers,” said Steve Weed, executive chairman of Ziply Fiber, in a press release. “This focus on delivering superior service will enable us to create outstanding value for all stakeholders.”
The transaction is valued at about $1.35 billion, with an additional $500 million being invested in network and service improvements for a total commitment of about $2 billion.