ExteNet Systems, the #2 provider of distributed networks for outdoor and indoor wireless connectivity, announced that Digital Bridge Holdings and Stonepeak Infrastructure Partners have committed or arranged for over $1 billion in a recapitalization of the company in which the interests of existing investors will be acquired and additional capital will be provided to support the long-term growth of the business. The recapitalization will enable ExteNet to continue pursuing strategic deployment of outdoor and indoor distributed networks, including Small Cells, to meet the high demand of network densification.
““Distributed networks, including Small Cells and DAS, are multi-billion dollar opportunities today and are projected to grow at more than 25 percent compounded annually. We are now well positioned to both execute our long-term growth plans and also meet the future needs of communications carriers across our target market segments,” said Extenet co-founder and CEO Ross Manire. “After a great run with our initial venture investor group who started with us ten years ago and the other significant investors who joined in 2010, Digital Bridge and Stonepeak are the ideal partners for this recapitalization.”
SBA Communications held a 19% stake in the company is likely to record a $150 million profit on its initial $43 million investment in 2010, according to Kevin Smithen at Macquarie Securities. Smithen also noted, “While the >$1 billion price tag was higher than initial press reports of nearly $700 million nearly a year ago, we are somewhat surprised that SBAC did not secure control of the last remaining small cell platform of scale out there. We believe ExteNet has about 10,000 nodes deployed or under construction including some WiFi access points and could add approximately 2,000 nodes per year. 99% of ExteNet’s fiber network is owned. As a reminder, monthly leases are $700-$800 per tenant with 10-15 year leases and carriers pay for 25% – 40% of the network construction costs.”
Reader Interactions