The funds will be used to support the carrier's growth strategy after its recent acquisition of Veracity Networks LLC, a transaction that FirstDigital said will position it as the largest fibre operator in Utah.
In addition, the investment will provide FirstDigital with liquidity to fund its longer-term growth plans.
"We see strong growth opportunities across our full suite of telecommunications services and are confident that the strategic investment by the Apollo Funds will support a transformative period for our company, starting with the integration of Veracity Networks,” said FirstDigital founder, president and CEO, Wesley McDougal.
"Apollo knows our business and industry well, and we’re excited to have their support as we continue to build our network, solutions and high-capacity services for our business customers,” McDougal added.
Apollo’s infrastructure business is currently investing out of its second dedicated infrastructure fund, which focuses on opportunities in communications, power and renewables, transportation and midstream energy.
Other notable transactions of late include Apollo's May agreement to acquire Verizon Media for $5 billion. Last year Apollo acquired Parallel Infrastructure, a US telecommunications platform owned by Lendlease.
“FirstDigital is a leading fibre operator in the southwest region, and we’re excited to leverage our telecoms infrastructure expertise and capital to help the company grow,” said Dylan Foo, senior partner and co-head of infrastructure at Apollo.
“This investment provides FirstDigital with greater financial flexibility and strategic advice to bolster their position within the dynamic and competitive telecommunications industry, especially at a time where bridging the national digital divide is more important than ever. We look forward to supporting Wesley and his team, helping fuel the Company’s long-term growth plans,” Foo continued.
Apollo’s Andrew Kirby added: “Against a backdrop of strong industry tailwinds, we believe that FirstDigital is well positioned to capture a substantial market opportunity. This investment underscores our belief in the leading role that fibre operators will play in providing critical connectivity to enterprises and communities alike.”
