Cox said it will acquire Segra’s commercial services segment, which it described as “a leading super-regional, fibre-based provider serving commercial enterprise and carrier customers in nine states in the mid-Atlantic and south-east [of the US]”.
It added: “The company’s dense metropolitan fibre network provides enhanced technology solutions and a commitment to a superior customer experience.”
Neither EQT nor Cox divulged the price, but the Bloomberg agency said: “People familiar with the matter said the transaction valued the Segra division at more than US$3 billion, including debt.”
EQT said it “will retain ownership of Segra’s fibre-to-the-premise (FTTP) residential and small- to medium-sized business [SMB] segment in Virginia and North Carolina and accelerate the plan to expand broadband services to neighbourhoods and markets throughout their regions”.
Pat Esser, president and CEO of Cox Communications,s said: “Cox is focused on buying and investing where it makes sense, and we believe that the demand for broadband infrastructure will continue to grow, making fiber an attractive area for long-term investment.”
Cox noted that it has previously bought fibre infrastructure from companies including EasyTel, EdgeConneX, InSite Wireless, StackPath, Unite Private Networks and ViaWest.
Esser said: “Acquiring Segra’s commercial services business is another key milestone in our pursuit of strategic infrastructure to ensure that we’re providing the best products and services to our customers.”
Cox said Segra’s existing management team will continue to lead the Segra enterprise and carrier organisation following the acquisition. Cox will “retain the Segra brand and operate as a stand-alone business within the Cox family of companies”.
EQT has not said what will happen to the rump of the business it still owns, the FTTP operation to residential and small and medium businesses.
