Through the investment, the Abu Dhabi sovereign investor will become a minority shareholder along with investment funds managed by Apollo Global Management’s affiliates
Mubadala Investment has announced an investment of $500m in Brightspeed, an American broadband and telecommunications services company.
Through the investment, the Abu Dhabi sovereign investor will become a minority shareholder along with investment funds managed by Apollo Global Management’s affiliates.
Mubadala real estate and infrastructure investment CEO Khaled Abdulla Al Qubaisi said: “As a responsible global investor, Mubadala sees huge opportunity in supporting Brightspeed’s growth strategy in transitioning large swathes of the US. to fibre connectivity and promoting digital equity and inclusion.
“We’re delighted to be partnering with Apollo and Brightspeed to capitalise on the growth opportunities in fibre deployment and create not only sustainable, long-term value, but also support the digital infrastructure development across the US.”
Headquartered in Charlotte, North Carolina, Brightspeed is said to be the fifth-largest incumbent local exchange carrier (ILEC) in the US.
The firm offers services to over 6.5 million households and businesses in rural and suburban communities across the US Midwest, Southeast, as well as parts of New Jersey and Pennsylvania.
Brightspeed officially began its operations in October 2022. The company began to serve its first fibre customers in March 2023.
Brightspeed CEO Bob Mudge said: “We are in the early stages of our company’s growth trajectory, and we are grateful for Mubadala’s endorsement of Brightspeed’s vision and strategy.
“The added investment from another well-respected institutional investor is a testament to the value we will create and the connections we will enable for homes and businesses across our 20-state footprint.”
With the investment, Brightspeed aims to expedite its growth plans to deliver high-speed, reliable internet connectivity to areas where access to fibre internet and advanced technology has been limited.
According to the firms, Brightspeed’s strategic fibre optics transformation is expected to reach up to three million households and businesses in the coming five years.
The investment transaction is subject to the receipt of customary regulatory approvals and the meeting of other conditions.
In October 2022, Mubadala acquired a minority stake in digital infrastructure and data communication provider GlobalConnect.