AMP Capital will acquire a US telecommunications company, becoming the fund manager's first asset of its type in the region.
AMP Capital entered into a definitive agreement with Everstream Solutions' investors for an undisclosed amount. The super-regional network service provider delivers Ethernet, internet and data centre solutions to businesses throughout the US Midwest.
AMP Capital head of Americas infrastructure equity Dylan Foo said it will act as the fund manager's platform for the consolidation of telecom assets in North America.
"We continually look for quality investments on behalf of our clients. Our focus remains on the middle market, which is where we see the greatest value and opportunity," Foo said.
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"Communications infrastructure has become an essential service in the modern world, including fibre, wireless and data centres. AMP Capital has a strong global pedigree in this target sector, and we are pleased to secure our first North American fibre asset."
In the region, AMP Capital is already invested in underground parking system Millennium Garages, and shipping and intermodal terminal operator, ITS ConGlobal.
The telco's current investors include Boston private equity firm M/C Partners and others advised by the Private Equity Group of J.P. Morgan Asset Management and Morgan Stanley Alternative Investment Partners.
"Our team is very thankful to M/C for the opportunity to partner with them and deliver an outstanding result to their investors. We are excited to join forces with AMP Capital," Everstream president and chief executive Brett Lindsey said.
"With their support, Everstream looks forward to continued positive growth through acquisitions, greenfield network builds and organic growth in our existing markets."
Everstream intends to use the investment from AMP Capital to fund organic network growth and further acquisitions; it already owns two major Michigan-based fiber network operators.
The acquisition is subject to regulatory approvals but it expected to finalise in the second quarter of 2018, with the likes of Evercore, MVP Capital and Goldman Sachs involved in the transaction.