Xplornet confirms acquisition by Stonepeak

Xplornet Communications has confirmed its acquisition by Stonepeak Infrastructure Partners but did not disclose any financial details. The parties have signed a binding agreement for the private equity firm to buy a controlling stake in the Canadian rural internet provider. Current chairman of the board Steve Weed, and his fund WaveDivision Capital, will remain material investors in the business. The transaction, subject to the usal approval, should close in the coming months. 

According to sources from Bloomberg, the deal values Xplornet at about USD 2 billion, including debt. 

Xplornet said the acquisition will give it a strong balance sheet to push forward its plan to improve broadband services in rural Canada, and that it will also have access to growth capital, which it will use to boost the organic and inorganic development of its broadband business. The company announced last year that it would invest USD  500 million over the coming five years into the deployment of hybrid fibre wireless and satellite technology in its facilities-based network. The company said it has also invested in 5G.

Stonepeak, a North American focused infrastructure firm with over USD 17 billion under management, said it will support Xplornet’s ambitions and that the company’s current executive team, led by CEO Allison Lenehan, will continue operating as normal, headquartered in New Brunswick. The equity firm owns another company in Canada, data centre company Cologix, with 17 facilities across Montreal, Toronto and Vancouver.