North America: Tiger Infrastructure makes fiber optic investment

08 December 2017 - 12:00 am UTC

New-York-based investment firm Tiger Infrastructure Partners announced yesterday (7 December) that it had agreed to acquire fixed-line infrastructure company Crosslake Fibre for an undisclosed amount. 

Crosslake Fibre develops fiber-optic cable projects throughout North America but is currently working on a submarine cable running between Toronto, Canada and Buffalo, New York through Lake Ontario, the first to directly connect Toronto with the US.

According to its website, Crosslake Fibre was founded by Canadian telecoms entrepreneur Mike Cunningham.

Cunningham has also served since May 2015 as the chairman of Ireland-France Subsea Cable (IFSC), another submarine project, this time between Southern Ireland and France. Tiger Infrastructure Partners is also a co-investor in that project, announcing its co-investment in January 2017.

Fiber-optic companies have proven attractive to investors recently: last month Swedish fund manager EQT completed its USD 1.1bn acquisition of Lumos Networks / Spirit Communications.

Greenfield development projects are also attractive: the USD 200m Pennsylvania Fiber-Optic Broadband Network P3 attracted responses from five consortia comprising 24 companies to its RFQ in September.

Tiger Infrastructure is making the Crosslake Fibre investment through its second fund, Tiger Infrastructure Partners Fund II. The fund recently announced an agreement to acquire the 500MW Danskammer power plant with co-investors Agate Power from the Mercuria Energy Group.

Tiger Infrastructure and Mike Cunningham did not respond to requests for comment before press time.