The EQT Infrastructure III fund has confirmed that it has completed its majority stake investment in US fibre-optic operator Spirit Communications. Following the completion of the transaction, EQT notes that Spirit will be combined with Lumos Networks, which the investor acquired for USD950 million in November 2017.
The new owner has asserted that the combination of Spirit and Lumos will create a ‘super-regional fibre network’ stretching from Pittsburgh to Atlanta, with the vast majority of revenue generated in the high-growth markets of Virginia, North Carolina and South Carolina. Together, Spirit and Lumos will operate a network of approximately 21,000 fibre route miles and well over one million total fibre strand miles.
Robert Keane, former CEO of Spirit, commented: ‘In an industry where most combinations are focused on eliminating cost benefits, this business combination is born out of expectations for revenue growth. We now have twice the footprint to reach more of our customers’ locations, and we expect to utilise both companies’ product portfolios to cross-sell these services across the expansive combined enterprise base.’