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Abu Dhabi sovereign investor Mubadala Investments will invest $500 million in US-based broadband and telecommunications services company Brightspeed.
Through this investment, Mubadala will become a minority shareholder along with investment funds managed by affiliates of Apollo Global Management (together with its consolidated subsidiary Apollo).
This is part of Mubadala’s rapidly growing digital infrastructure portfolio, led by its executive director, Mounir Barakat. In 2022, Mubadala invested US$350 million in Princeton Digital Group, a leading pan-Asian data center company focused on expanding world-class data center services to meet growing demand in Asia. Mubadala has also invested £800 million ($998 million) in CityFibre, the UK’s largest independent full-fibre platform. To date, CityFibre has connected more than two million homes in the UK to its advanced fiber optic network.
fifth largest airline
Headquartered in Charlotte, North Carolina, Brightspeed is the fifth largest incumbent Local Exchange Carrier (ILEC) in the United States, serving more than 6.5 million homes and businesses in major rural and suburban communities in the Midwest, Southeast and parts of the United States Pennsylvania and New Jersey.
Brightspeed officially launched operations in October 2022 and began construction of its state-of-the-art fiber optic network, which will begin serving its first fiber optic customers in March 2023.
The fiber optic retrofit planned by Brightspeed is expected to benefit as many as 3 million homes and businesses over the next five years, including many places where fiber optics and advanced technologies have historically not been deployed.
With the rise of cloud services, video streaming, IoT applications and 5G technology, data volumes are increasing and the demand for faster, reliable connections is rapidly increasing. Companies such as Brightspeed play a vital role in providing basic digital infrastructure solutions. important role.
digital division
Brightspeed is rooted in the ambition to help bridge the digital divide. The investment will help accelerate Brightspeed’s growth plans to bring high-speed, reliable Internet connectivity to communities that have historically had limited access to fiber optic Internet and advanced technology.
Khaled Abdulla Al Qubaisi, CEO of Mubadala Real Estate and Infrastructure Investments, said: “Digital infrastructure is driving growth and development across all sectors of society, enabling people and economies to reach their full potential. As a responsible global investor, Mubadala Badala sees a huge opportunity to support Brightspeed’s transition to fiber optic connectivity across large swaths of the United States and its growth strategy to promote digital equity and inclusion.
growth opportunity
“We are excited to partner with Apollo and Brightspeed to capitalize on the growth opportunity in fiber deployments to not only create sustainable long-term value, but to support the growth of digital infrastructure across the United States.”
Bob Mudge, CEO of Brightspeed, said: “We are at an early stage in the company’s trajectory and we are grateful to Mubadala for his endorsement of Brightspeed’s vision and strategy. The additional investment from another well-respected institutional investor is a testament to the value and the connections we will create to families and businesses across 20 states.”
Aaron Sobel, Partner at Apollo Private Equity, said: “We are delighted to welcome our long-standing partners in Mubadala as Brightspeed shareholders and believe this commitment validates our transformational thesis and the strength of our management team.”
evolving relationship
The deal also represents the growing relationship between Mubadala and Apollo since the expansion of their global strategic partnership in 2022. Last February, the two firms announced an agreement focused on private credit investment opportunities and deal origination across asset classes.
The transaction is subject to customary regulatory approvals and conditions.
Paul, Weiss, Rifkind, Wharton & Garrison LLP acted as legal advisor to Brightspeed. King & Spalding LLP acted as legal counsel to Mubadala. — trade arab news agency
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