Apollo Global Management infrastructure funds are investing $200m (€168m) in FirstDigital Telecom, a fibre-based carrier in the western US.
Apollo said the ”strategic investment” will support and provide FirstDigital with liquidity to fund its longer-term growth plans. Part of the investment will also help fund FirstDigital’s recent acquisition of Veracity Networks, a fibre-based and cloud communications service provider located in Lindon, Utah.
Dylan Foo, senior partner and co-head of infrastructure at Apollo Global Management, said: “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.”
Andrew Kirby, infrastructure private equity principal at Apollo Global Management, said: “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.”
Wesley McDougal, FirstDigital Telecom founder, president and CEO, said: “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.
“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.”
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