Australian infrastructure investors AMP Capital today (12 March) announced the acquisition of fiber optics network services provider Everstream from M/C Partners, JP Morgan Asset Management and Morgan Stanley Alternative Investment Partners.
The acquisition, which is due to close in the next four to six weeks, means that AMP Capital has now invested in all sectors in its strategy: transportation, power, energy and telecommunications, according to Dylan Foo, partner and head of Americas infrastructure equity.
“Telecoms are an essential part of society now and we’ve been tracking opportunities across the globe. It’s important for investors to have deep sector expertise with these kinds of assets,” Foo said. “We have actively targeted data center and tower opportunities in the past and we feel it’s important to get a foothold in the telecoms space early as the landscape’s going to look very differently in the near future.”
Foo added that Everstream will be AMP’s platform for the consolidation of telecom assets in North America.
Everstream’s clients are wholesale customers including the big carriers, as well as Fortune 500 enterprise customers.
This is AMP Capital’s first US equity investment in communications infrastructure. The group has made a number of investments in Europe and also invested debt with Vertical Bridge in an October 2017 financing.
Goldman Sachs (financial), KPMG (financial and tax), CMA (technical) and White & Case (legal) advised AMP Capital on the deal. Evercore and MVP Capital (financial) are advising Everstream and M/C Partners in connection with the transaction, while Choate, Hall & Stewart and Thompson Hine are the sellers’ legal advisors.
Everstream is a super-regional network service provider of fiber-based ethernet, internet and data center solutions to businesses throughout the American Midwest. The company currently has more than 10,000 route miles and comprehensive data center connectivity at 100 gigabit speed.
“AMP has been increasingly active in North America over the past four years and we have executed across each of our target sectors,” Foo said. “The US market represents a growing component of our global strategy and we continue to see value in mid-market growth assets.”