Cox Communications to Acquire Segra's Commercial Enterprise And Carrier Business

Acquisition to accelerate Segra's long-term strategy, meet growing demand for broadband infrastructure.

  • Cox Communications

ATLANTA and CHARLOTTE, N.C. -- Cox Communications has entered into an agreement to acquire Charlotte, N.C.-based Segra, one of the largest privately-held fiber infrastructure providers in the U.S. 

Cox will acquire Segra's commercial services segment, which is a leading super-regional, fiber-based provider serving commercial enterprise and carrier customers in nine states in the Mid-Atlantic and Southeast. The company's dense metropolitan fiber network provides enhanced technology solutions and a commitment to a superior customer experience.

"Cox is focused on buying and investing where it makes sense, and we believe that the demand for broadband infrastructure will continue to grow, making fiber an attractive area for long-term investment," said Pat Esser, president and CEO, Cox Communications. "Acquiring Segra's commercial services business is another key milestone in our pursuit of strategic infrastructure to ensure that we're providing the best products and services to our customers."

In the last few years, Cox network infrastructure investments have included EasyTel, EdgeConneX, InSite Wireless, StackPath, Unite Private Networks and ViaWest. The Segra acquisition supports that ongoing focus.

"Our relationship with Cox will allow Segra to leverage expert resources, capabilities and strategic insights in order to scale up operations and accelerate long-term growth," said Timothy Biltz, CEO of Segra. "Cox and Segra are equally devoted to the communities we serve. We will be even more strongly positioned to meet growing demand from carrier and enterprise customers for high-bandwidth fiber-infrastructure solutions. I would also like to thank EQT for its continued guidance and invaluable support as we worked to grow the business over the last nearly four years."

Segra's existing management team will continue to lead the Segra enterprise and carrier organization following the acquisition, will retain the Segra brand and operate as a stand-alone business within the Cox family of companies.

As part of the transaction, EQT Infrastructure will retain ownership of Segra's fiber-to-the-premise (FTTP) residential and small- to medium-sized business segment in Virginia and North Carolina and accelerate the plan to expand broadband services to neighborhoods and markets throughout their regions. 

Diego Anderson, Senior Vice President and General Manager of the operations, will serve as chief executive officer of the new company, leading a growing team of dedicated employees focused on serving existing customers while also capturing new market growth opportunities. The company plans to significantly accelerate its build-out of fiber in many underserved areas of Virginia, North Carolina, and other markets throughout the region.

Lumos Networks and NorthState provide broadband availability to nearly 200,000 residential and SMB locations, the majority of which are served with high bandwidth fiber. With EQT’s support, the company will expand into additional markets, connecting thousands of new homes and businesses, thereby cementing its status as a premiere, super-regional FTTP growth platform.

The transaction is subject to customary regulatory approvals and closing conditions.  Bank Street Group LLC and Goldman Sachs and Co. LLC acted as financial advisors and Simpson Thacher & Bartlett LLP acted as legal advisor to Segra in connection with the transaction.

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