Digital Colony to invest US$181 million in Beanfield Metroconnect
Digital Colony has announced a strategic recapitalisation of Beanfield Metroconnect that will see the digital infrastructure investment platform of Colony Capital Inc (NYSE: CLNY) invest US$181 million in Beanfield to capitalise on “a variety of new segment and revenue opportunities”.
It follows Digital Colony’s acquisition of Beanfield in 2019, through which Beanfield has grown its network footprint 10-fold from approximately 400 route KM to more than 4,000 across both markets.
Its ability to service on-net buildings has also increased almost six-fold from approximately 550 buildings to 3,200 buildings.
Commenting on the latest deal, Steven Sonnenstein (pictured), MD at Digital Bridge and Digital Colony, said: “This transaction exemplifies our approach to underwriting and our commitment to fostering growth in exceptional businesses with strong management teams.”
“Today’s recapitalisation underpins our confidence in the continued opportunities for growth that result from the unrelenting focus on the customer experience and high-quality services that are at the core of Beanfield’s business,” Sonnenstein added.
Leveraging existing relationships with institutional lenders, Digital Colony’s financing included a first lien term loan and a revolving credit facility. TD Securities served as joint lead arranger, joint bookrunner and administrative agent, while RBC Capital Markets and SunTrust Robinson Humphrey served as joint lead arranger and joint bookrunner.
As part of the transaction, Beanfield has acquired the metro network of Aptum Technologies, a global hybrid cloud and managed services provider.
As a result, Beanfield will enhance connectivity services and fibre solution capabilities in Toronto while expanding its presence in Montreal following the recent acquisition of regional telecom fibre services provider OpenFace Inc.
Digital Colony bought StrattoOpencell, iWireless Solutions and Spyder Facilities between August 2018 and June 2019, all companies that specialise in providing indoor and outdoor mobile networks on behalf of licensed operators.
In December 2019, Digital Colony Partners' acquired Highline do Brasil II Infraestrutura de Telecomunicações SA (Highline).