Real assets manager Stonepeak is set to take a majority interest in a new US fibre broadband company created through the merger of its existing assets with those of technology conglomerate Alphabet.
Stonepeak has agreed to merge its Astound Broadband business with GFiber to create an independent fibre provider.
Google’s parent Alphabet will remain a significant minority shareholder in the combined business, which will be led by the existing GFiber executive team.
GFiber, formerly Google Fiber, provides high-speed internet to residential and commercial customers across the US
Astound is a US broadband provider offering internet, entertainment, communications, connectivity and fibre infrastructure solutions for residential customers and businesses of all sizes. It operates RCN Telecom Services, Grande Communications, Wave and enTouch Systems.
In late 2020, Stonepeak partnered with Patriot Media in an $8.1bn (€7bn) transaction to acquire US cable operator Astound Broadband from TPG Capital.
Andrew Thomas, senior managing director at Stonepeak, said: “This partnership will be transformational for the businesses, with GFiber and Astound’s complementary networks and extraordinary teams enabling the combined company to better serve millions of customers and the demand for a next generation network and ubiquitous connectivity.
“Stonepeak has a strong track record of building world-class digital infrastructure and we look forward to supporting the company with Alphabet as a co-investor.”
Ruth Porat, president and CIO, Alphabet and Google, said: “Building on GFiber’s success as a leading independent US fibre internet provider, this is an exciting next phase of their growth.
“GFiber will now have the opportunity to provide better internet access to more communities across the country as they combine with Stonepeak’s Astound business, while continuing to provide their award-winning customer experience.”
Dinni Jain, GFiber CEO, said: “GFiber has always been about pushing the boundaries of what’s possible for internet speed and service. This partnership with Astound and Stonepeak is the next step in our decade-long mission to redefine what customers can expect from their internet provider.
“It’s a strategic opportunity to scale our customer-focused approach to connect more households to a truly different type of internet service.”
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