Xplornet Announces Completion of Sale to Stonepeak Infrastructure Partners

Deal will enable Xplornet to improve coverage, increase investment and accelerate its plan to deliver a national fibre, wireless and satellite network to improve broadband for rural Canadians

WOODSTOCK, NB – Xplornet Communications Inc., Canada’s largest rural-focused broadband service provider, today announced the completion of its sale to Stonepeak Infrastructure Partners, whereby Stonepeak has acquired the controlling stake in Xplornet. The transaction has received all regulatory approvals and completed new financing for a fully capitalized business.

Today’s announcement empowers Xplornet to execute its plan of accelerating investment in its national hybrid fibre wireless and satellite broadband network for rural Canadians. Xplornet has fresh new capital for a strong balance sheet, a new owner with the same conviction to the company’s mission as its employees, and a renewed sense of purpose on improving broadband services for rural Canadian homes and businesses.

Stonepeak is a North American focused infrastructure firm that manages $24.4 billion USD of assets for its investors (as of May 22, 2020). The firm has a strong track record of investing in mission-critical telecommunication businesses globally. Stonepeak is committed to supporting the existing Xplornet business plan. Allison Lenehan, the Chief Executive Officer, and the current executive team will continue leading Xplornet and the company will remain headquartered in New Brunswick.

“We are thrilled to complete our sale to Stonepeak and begin the next chapter of Xplornet. Rural Canadians deserve world-class broadband and we are fixated on delivering for them. We know there is more work to do,” said Allison Lenehan, President and CEO of Xplornet.

“This deal will enable Xplornet to expand coverage, increase investment, and accelerate improvements to our broadband network. For our customers, this means unprecedented speeds, unlimited data plans, and 5G services at affordable prices. Rural Canadians deserve access to the same quality of broadband as in urban Canada. It is time to go faster,” said Lenehan.

Brian McMullen, Senior Managing Director and head of Stonepeak’s communications and digital infrastructure business added: “We are delighted to partner with Allison and the Xplornet team to build upon the premier broadband provider they have established. In an increasingly digital society, we believe there is an opportunity to deliver faster speeds and greater coverage, supporting the ability to work from home, distance learning, more connected devices and shifting entertainment mediums. We look forward to continuing to invest in the company’s network infrastructure and service capabilities to support an exceptional broadband proposition.

Today’s announcement builds on the investments in fibre and 5G wireless technology already made by Xplornet throughout Canada. In 2019, Xplornet announced that it will invest $500 million over the next five years to deploy state-of-the-art hybrid fibre wireless and satellite technology in its facilities-based network in order to deliver broadband services to rural Canadians. The completion of its sale to Stonepeak is one more step in making this promise a reality.