Igor Leprince (BAI Communications)
Australian communications infrastructure provider BAI Communications has struck a deal to acquire Mobilitie, which claims to be the largest privately held telecommunications infrastructure company in the United States.
Based in California, Mobilitie provides telecommunication services and wireless infrastructure, including communication towers, small cells, internet of things (IoT), fibre and Wi-Fi networks, across major industries such as sports and entertainment, real estate, hospitality, education, healthcare, government and transportation.
The acquisition represents a major expansion of BAI Communications’ business in North America, where it provides cellular and Wi-Fi connectivity across large infrastructure projects, including the New York City subway system, under its majority-owned business Transit Wireless.
As such, the deal significantly extends the Sydney-headquartered communications infrastructure provider’s footprint coast-to-coast across what it considers to be one of the world’s fastest growing connected infrastructure markets.
Indeed, it is hoped the acquisition will support BAI Communications’ strategic goal of becoming one of the leading connected infrastructure 5G players in North America, as well as globally.
“BAI’s acquisition of Mobilitie establishes us as a leading telecommunications infrastructure provider in the United States and the most relevant provider of public transit wireless connectivity solutions in North America,” said Igor Leprince, group CEO of BAI Communications.
“This reflects our ambitions for the US as well as the other markets in which we operate globally and puts us in the perfect position to capitalise on the growing prioritisation of connected infrastructure in regions such as the UK and Europe.
“The scale and strong relationships with large venue operators and mobile network operators that Mobilitie brings fits perfectly with BAI’s existing leadership in connected transit and infrastructure,” he added.
From Leprince’s perspective, Mobilitie, like BAI, places a high priority on offering technical expertise and “impeccable” delivery to its customers, alongside a deep commitment to exceptional customer service.
“This alignment and the complementary fit of our offerings make this an exciting move for BAI and our customers around the world. It strongly positions us to scale and extend the work we are already delivering,” he said.
Broadly, the deal brings together what BAI Communications suggests is a highly complementary offering between the two organisations, enabling the provider to quickly extend and diversify its solution and service offering beyond its current global markets.
Essentially, the acquisition will see Mobilitie’s assets and operations across 5G outdoor and indoor wireless infrastructure, small cell deployment expertise, and its work with transit operators across major US cities complement BAI’s expertise in delivering communications infrastructure in dense urban and transit environments.
The acquisition will also add Mobilitie’s broader portfolio of 220 venues across 39 states, 10,000 small cells across 45 states and 300 tower sites across 14 states to BAI’s operations.
It is anticipated that Mobilitie’s additional portfolio will also help to support BAI’s expansion in the UK and Europe as it pursues significant opportunities.
Just days ago, BAI Communications revealed it had been awarded a 20-year concession by Transport for London (TfL) to establish an underground city-wide integrated communications network delivering multi-carrier cellular, Wi-Fi and fibre services.
Meanwhile, Gary Jabara, founder and chairman of Mobilitie, said the deal augments Mobilitie’s market impact worldwide.
“BAI’s significance as a 5G player, together with Mobilitie, will enable unprecedented support of US wireless carriers," Jabara said. "It puts us on a clear, long-term path to greatly accelerate business and help our customers, especially the mobile network operators.
“Combining BAI’s connectivity solutions and international presence with Mobilitie’s North American assets, including our nationwide footprint of tier one venues, public transit systems in the San Francisco Bay Area and Seattle, along with 10,000 small cells and thousands of New York small cells that are in and around BAI’s existing assets, makes us better positioned for 5G growth than anyone else in North America,” he added.
Canada Pension Plan Investment Board (CPP Investments), which is BAI Communications' majority shareholder, welcomed the acquisition deal, as did Alberta Investment Management Corporation, a minority shareholder in BAI.
“As a long-term investor, on behalf of our clients, we are proud to support the management team of BAI in its successful acquisition of Mobilitie,” said Ben Hawkins, senior vice president of infrastructure and renewable resources at Alberta Investment Management Corporation.
“BAI has a demonstrated track record of successfully integrating companies as part of its growth strategy and realising the full value of the combined entities for all stakeholders,” he added.
The transaction is subject to regulatory clearances and is expected to close in the third quarter of this year.
