Flush with Cash and Ready to Buy, Investors Take Aim at Fiber-Rich Operators

November 2019 - Jeff Johnston

Key Points

  • Major infrastructure funds have been acquiring mid-sized fiber transport operators to gain exposure to the telecom market.
  • Strategic buyers have also been active in the market as they look for scale and market expansion.
  • The increase in mergers and acquisitions (M&A) has pushed valuations for telecom operators to levels that were unthinkable a couple of years ago.
  • Investors are now turning their attention to smaller regional/rural operators with strong cash flows, fiber assets, and attractive organic growth prospects.
  • Given all of the money chasing a finite number of companies, it should remain a sellers’ market for the foreseeable future.

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