Cox Communications is acquiring Charlotte, North Carolina-based fiber infrastructure provider Segra for an undisclosed amount.
This is technology M&A deal number 248 that ChannelE2E has covered so far in 2021. See all technology M&A deals for 2021 and 2020 listed here.
Cox will acquire Segra's commercial services segment, which serves commercial enterprise and carrier customers in nine states in the mid-Atlantic and southeast U.S., the company said.
As part of the transaction, EQT Infrastructure will retain ownership of Segra's fiber-to-the-premise (FTTP) residential and small- to medium-sized business segment in Virginia and North Carolina where it plans to expand broadband services to neighborhoods and markets throughout their regions, Cox said.
Cox has made a number of network infrastructure investments in recent years, including EasyTel, EdgeConneX, InSite Wireless, StackPath, Unite Private Networks and ViaWest. The Segra acquisition supports that ongoing focus, the company said.
Segra's existing management team will continue to lead the Segra enterprise and carrier organization following the acquisition. It will also retain the Segra brand and operate as a stand-alone business within the Cox family of companies, according to Cox.
Cox Acquires Segra: “A Key Milestone”
Pat Esser, president and CEO, Cox Communications, commented:
"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. 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."
Timothy Biltz, CEO of Segra, added:
"Our relationship with Cox will allow Segra to leverage expert resources, capabilities and strategic insights in order to scale up operations and accelerate long-term growth. Cox and Segra are equally devoted to the communities we serve. We will be even more strongly positioned to meet growing demand from carrier and enterprise customers for high-bandwidth fiber-infrastructure solutions. I would also like to thank EQT for its continued guidance and invaluable support as we worked to grow the business over the last nearly four years."
Cox’s Growth
Cox’s history stretches back more than two decades. The company was the first national operator to provide telecom services for businesses beginning in 1993. Since then, it has grown that particular business segment to more than $2 billion in annual revenue. The company says it has continued to diversify its portfolio through several strategic investments, acquisitions, and new capabilities including Blueprint RF, Unite Private Networks, Trapollo, Hospitality Network and Cox Business Security Solutions.
Cox’s commercial division, Cox Business, provides voice, data, and video services. In 2018, that division acquired RapidScale, gaining a range of managed cloud services.
