Xplornet says Stonepeak sale will lead to accelerated broadband investment

Xplornet Communications Inc.’s sale to U.S. based Stonepeak Infrastructure Partners will allow it to accelerate its broadband roll-out in rural Canada, according to CEO Allison Lenehan. In a media release issued Thursday, the New Brunswick headquartered company said the finalization of the sale meant it had “fresh new capital for a strong balance sheet” and a “renewed sense of purpose on improving broadband services for rural Canadian homes and businesses.” Lenehan said the deal would allow Xplornet to “expand coverage, increase investment and accelerate improvements” to its broadband network, stating it would result in unprecedented speeds, unlimited data plans and affordable 5G plans for its customers. “Rural Canadians deserve access to the same quality of broadband as in urban Canada. It is time to go faster," Lenehan said in the release. The investment is on top of last year’s announcement that Xplornet would invest $500 million in rural broadband services over five years. Xplornet spokesman James Maunder said the company would be sharing specific details about the investment, including dollar amounts and where in rural Canada the spend would be concentrated, “very soon,” but said it was a significant increase on last year’s announcement. The investment is not contingent on future regulatory decisions, Maunder said. Maunder declined to reveal the price Stonepeak paid to purchase the company, although Bloomberg News and the Globe and Mail reported in February that the sale price was about $2 billion USD, including debt. Stonepeak senior managing director Brian McMullen said in the release the investment firm was delighted the deal had been finalized. “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,” McMullen said. “We look forward to continuing to invest in the company's network infrastructure and service capabilities to support an exceptional broadband proposition.” According to a statement issued by Xplornet in February, Stonepeak has acquired a controlling stake in the business, but Xplornet board chair Steve Weed and his fund WaveDivision Capital will remain “material investors” in the company.

Xplornet says Stonepeak sale will lead to accelerated broadband investment

Brief | June 11, 2020

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Xplornet says Stonepeak sale will lead to accelerated broadband investment

Brief | June 11, 2020

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