The Pittsburgh-based utility company Duquesne Light Holdings Inc. (DLH), the parent company of fiber network operator DQE Communications (DQE), is set to be acquired by investment firm GI Partners.
Let’s read the news and find out more about this acquisition.
Investment Firm to Buy Utility Fiber Company DQE Communications
Originally established in 1997 as a division of DLH, a power company, DQE Communications, has now grown outside of its primary Pittsburgh region.
When GI Partners announced the acquisition, they called DQE Communications the biggest independent fiber provider in the area. A 4,700-route mile fiber network connecting over 3,000 companies, towers, and data centers is one of the company’s infrastructure-focused services.
In response to the growing demand for high-capacity, carrier-class bandwidth services by customers in the enterprise, carrier, wireless, education, municipal, and government sectors, DQE said it plans to expand its fiber network operations further with the capital infusion and additional resources from GI Partners.
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The transaction’s value of this acquisition was not made public. It is anticipated to close in the first half of 2024. After the deal closes, DQE will have more resources available to grow its fiber network.
Brendan Scollans, managing director and co-head of GI Data Infrastructure, stated in a prepared statement, “We are excited to partner with the DQE team, which has built the region’s most advanced carrier-grade, secure, and reliable network serving preeminent enterprise and carrier customers.”
Scollans added, “Since its inception, DQE has been dedicated to deploying best-in-class network infrastructure, and we look forward to working with the DQE team to grow the platform in the years ahead.”
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The CEO of DQE Communications, Jim Morozzi, stated, “This is a great opportunity for DQE. The investment by GI Partners uniquely positions DQE as a scaled and trusted strategic network provider,”
Morozzi added, “GI Partners is an experienced and knowledgeable investor in digital infrastructure, and we look forward to partnering with them to accelerate our network solutions and geographic reach while remaining fully committed to delivering exceptional service that our customers have come to expect from us for over 25 years.”
Kevin Walker, president and CEO of Duquesne Light Holdings, stated, “We are proud of DQE’s growth in recent years and see this sale as an important next step in their future. We are committed to continuing our investment into the growth of the DQE Communications business leading up to close.”
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“Once the transaction is complete, we plan to reinvest proceeds from the sale back into Duquesne Light Company and its affiliate, The Efficiency Network (TEN),”
In recent years, GI Partners has acquired several telecom companies. Rise Broadband was one most recent acquisitions of GI Partners.
Since its founding in 2006, JAB Broadband, also known as Rise, has mostly operated as a fixed wireless service.
The business has served as a consolidator in the fixed wireless sector, which comprises many tiny businesses, some of which only have a small customer base.
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