Conterra

US indie fibre provider acquired by investors

07 July 2020 | Melanie Mingas

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Conterra Ultra Broadband Holdings, Inc., a US-based independent operator of 11,100 fibre route miles, has been acquired by APG and Fiera Infrastructure.

Founded in 2003, Conterra is considered one of the largest independent broadband infrastructure companies in the United States. It delivers high-capacity customised middle and last-mile fibre and wireless services to enterprise, carrier, education, government and data centre customers across 21 states.

Conterra president and CEO, Craig Gunderson, said: “On behalf of the Conterra management team and our employees, we are excited to be partnering with APG and Fiera Infrastructure, two exceptionally well capitalised institutions with significant experience growing infrastructure businesses.

“With their financial strength and support, we will accelerate our expansion plans in Tier II and Tier III markets through the rapid expansion of our fibre networks, strategic acquisitions and enhanced fibre-based solutions, while remaining fully committed to delivering an exceptional customer experience,” he added.

APG is one of the largest pension fiduciary asset managers in the world, working for more than 22,000 employers and providing the pension for one in five families in the Netherlands. APG said it is “one of the most active infrastructure investors globally”, and that is holds a growing global presence across the telecommunications sector.

Fiera Infrastructure – part of Fiera Capital Corporation (TSX: FSZ) – acquired a significant equity interest in Conterra in April 2019 through its EagleCrest Infrastructure strategy.

President Alina Osorio said: “Fiera Infrastructure looks forward to working closely with our new partner APG in support of Conterra's solid management team and employee base as they continue to execute upon their expansion strategy.”

Steven Hason, Americas head of real assets at APG, commented: “This investment will position Conterra to provide vital infrastructure to underserved markets and customers well into the future. APG looks forward to our partnership with both Fiera Infrastructure and the Conterra management team.”

Holders of the Company's first and second lien debt facilities have consented to the transaction and closing is subject to customary closing conditions including required regulatory approvals. Conterra's senior debt facilities are rated by Moody's and Standard & Poor's.