Blackstone, investing on behalf of its opportunistic investment and open-ended infrastructure funds, has acquired a stake in US fibre network provider Hotwire Communications.
Funds managed by Blackstone Tactical Opportunities and Blackstone Infrastructure Partners have invested an undisclosed amount buy a stake in Hotwire, a company co-founded in 2000 by Michael Karp and CEO Kristin Johnson.
It is understood that Blackstone now owns a 50% stake in the Florida-headquartered fibre-to-the-home provider.
Jasvinder Khaira, a senior managing director with Blackstone Tactical Opportunities, said: “Consumers are increasingly seeking state-of-the-art fibre connectivity to meet their growing need for connected devices in their homes, and we believe Hotwire is exceptionally well-positioned to capitalise on this rising market demand.
“We look forward to leveraging Blackstone’s scale to turbocharge Hotwire’s growth with further investment.”
Greg Blank, a senior managing director with Blackstone Infrastructure Partners, said: “Data proliferation and consumer connectivity are two of Blackstone’s highest conviction themes, and we are pleased to invest in an industry leader.
“By combining Hotwire’s strong, entrepreneurial business model with Blackstone’s scale, resources, and reach, we see an immense opportunity for continued growth.”
Kristin Johnson, CEO of Hotwire, said: “We have an aligned vision for both the future of broadband and fibre optic infrastructure, and Blackstone’s broad reach will help Hotwire to continue to scale as a premier provider of telecom and Internet services during a time when digital services are playing an increasingly vital role in all our lives.”
To read the digital edition of the latest IPE Real Assets magazine click here.