There's a bit of fiber M&A activity out there this week in a lesser known corner of the sector. Axia NetMedia has a private equity suitor. Partners Group has agreed to acquire the Toronto-listed network builder and operator.
Axia NetMedia owns and/or operates networks in three distinct geographies. They operate a 13,000km province-wide network in Alberta, a 2,153km regional open access footprint in western Massachussetts, and a 3,700km national network in France in partnership with Covage. The purchase by Partners Group is expected to give the company the resources to pursue more expansion opportunities. Whether that is by organic or inorganic means is an interesting question that bears watching.
For its part, this is the second move by Partners Group into the world of fiber infrastructure. The other came in December when they invested in the construction of Seaborn Networks' Seabras-1 submarine cable system. Their bid for Axia is CAD$4.25 per share, which works out to CAD$272M, and has been unanimously recommended by Axia's board of directors.
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