CPP Investments, AIMCo and Manulife IM Support Boldyn's US Growth

SWFI reports Canadian pensions help fund Boldyn buyout of Apogee Telecom:

Canada Pension Plan Investment Board (CPP Investments), Alberta Investment Management Corporation (AIMCo) and Manulife Investment Management announced a new follow-on commitment to Boldyn Networks (Boldyn), a shared network infrastructure provider in the U.S. and globally. This commitment will support Boldyn’s ongoing growth strategy, including the agreed acquisition of Austin, Texas-based Apogee Telecom, Inc. (Apogee), one of the largest providers of on-campus connectivity infrastructure in the U.S. higher education industry. Boldyn Networks was formerly known as BAI Communications. BAI Communications acquired Mobilitie in late 2021, Vilicom in late 2021, Signal Point in early 2022, and ZenFi Networks in late 2022. BAI Communications also purchased New York subway communications specialist Transit Wireless.

This acquisition represents an opportunity for Boldyn to grow its U.S. footprint and capabilities by expanding into the higher education sector as the demand for highspeed, low latency connectivity at colleges and universities continues to rapidly increase. Serving more than 350 institutions, Apogee offers wireless residential campus networks for students, faculty and staff, as well as managed campus network and technology solutions, fiber infrastructure as a service, and video services. Through this deal, Apogee’s customers will have access to Boldyn’s extended wireless capabilities.

Since 2009, CPP Investments has been a majority shareholder in Boldyn (with an 86% position) and has committed approximately C$3.5 billion to the Boldyn platform, with AIMCo as a minority shareholder in the company (with a 10% position). In the fourth quarter of 2021, Manulife Investment Management, on behalf of its clients, partnered with Boldyn to acquire a minority interest in its digital infrastructure assets in the U.S.

The Apogee transaction is subject to customary regulatory consents. It is expected to close in the second quarter of 2024.

Advisors
Boldyn Networks was advised by Bank Street Group and Latham & Watkins. Houlihan Lokey acted as financial advisor to Apogee.

BAI Communications was formerly Broadcast Australia, is an Australian telecommunications systems company. In November 2019, Broadcast Australia was rebranded BAI Communications. Macquarie Bank completed its acquisition of National Transmission Agency in 2002 the seed asset in the publicly listed Macquarie Communications Infrastructure Group (MCIG) fund and rebranded it as Broadcast Australia. The MCIG fund, including Broadcast Australia, was acquired by the Canada Pension Plan Investment Board in 2009.

CPP Investments issued a press release yesterday stating that along with AIMCo and Manulife IM, it will increase its commitment to Boldyn Networks to support its US growth:

Toronto/Edmonton, CANADA (March 6, 2024) – Canada Pension Plan Investment Board (CPP Investments), Alberta Investment Management Corporation (AIMCo) and Manulife Investment Management today announced a new follow-on commitment to Boldyn Networks (Boldyn), a leading shared network infrastructure provider in the U.S. and globally. This commitment will support Boldyn’s ongoing growth strategy, including the agreed acquisition of Apogee Telecom (Apogee), one of the largest providers of on-campus connectivity infrastructure in the U.S. higher education industry.

This acquisition represents an opportunity for Boldyn to grow its U.S. footprint and capabilities by expanding into the higher education sector as the demand for highspeed, low latency connectivity at colleges and universities continues to rapidly increase. Serving more than 350 institutions, Apogee offers wireless residential campus networks for students, faculty and staff, as well as managed campus network and technology solutions, fiber infrastructure as a service, and video services. Through this deal, Apogee’s customers will have access to Boldyn’s extended wireless capabilities.

“As demand for connectivity and data-rich content rises, Boldyn is well placed to provide advanced, high-performing network services as a global player in the wireless infrastructure sector,” said James Bryce, Managing Director, Head of Infrastructure, CPP Investments. “Investing in digital infrastructure continues to be attractive as the world becomes increasingly data centric, and we believe Boldyn’s acquisition of Apogee will position the company for growth within the large-scale U.S. higher education industry.”

Since 2009, CPP Investments has been a majority shareholder in Boldyn (with an 86% position) and has committed approximately C$3.5 billion to the Boldyn platform, with AIMCo as a minority shareholder in the company (with a 10% position). In the fourth quarter of 2021, Manulife Investment Management, on behalf of its clients, partnered with Boldyn to acquire a minority interest in its digital infrastructure assets in the U.S.

“Boldyn has articulated and effectively executed an impressive growth strategy with acquisitions that both expand its footprint and complement its core capabilities as a leading network infrastructure provider,” said Ben Hawkins, Executive Managing Director, Head of Infrastructure & Renewable Resources, AIMCo. “Apogee brings important scale to Boldyn’s U.S. business as well as a new focus on the growing higher education market.

“We are pleased to continue to support the growth of Boldyn Networks as one of the leading neutral-host connectivity providers in the U.S. positioned to benefit from the increased demand for fixed and wireless connectivity solutions,” said Daniel Neil, Senior Director, Infrastructure Investments, Manulife Investment Management. “We believe that Boldyn’s acquisition of Apogee is a strategic fit as it will expand the company’s wireless capabilities and provide an opportunity to serve new clients as colleges increasingly outsource connectivity infrastructure to trusted partners.”

The Apogee transaction is subject to customary regulatory consents. It is expected to close in the second quarter of 2024.

About CPP Investments

Canada Pension Plan Investment Board (CPP Investments™) is a professional investment management organization that manages the Fund in the best interest of the more than 22 million contributors and beneficiaries of the Canada Pension Plan. In order to build diversified portfolios of assets, investments are made around the world in public equities, private equities, real estate, infrastructure and fixed income. Headquartered in Toronto, with offices in Hong Kong, London, Luxembourg, Mumbai, New York City, San Francisco, São Paulo and Sydney, CPP Investments is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At December 31, 2023, the Fund totalled C$590.8 billion. For more information, please visit www.cppinvestments.com or follow us on LinkedIn, Instagram or on X @CPPInvestments.

About Alberta Investment Management Corporation (AIMCo)

AIMCo is one of Canada’s largest and most diversified institutional investment managers with more than C$158 billion of assets under management. AIMCo invests globally on behalf of pension, endowment, insurance, and government funds in the Province of Alberta. AIMCo manages approximately 30 pools of capital on behalf of our clients. With offices in Edmonton, Calgary, Toronto, London, Luxembourg, New York, and Singapore, our more than 200 investment professionals bring deep expertise in a range of sectors, geographies, and industries. For more information on AIMCo please visit www.aimco.ca or follow us on LinkedIn.

About Manulife Investment Management

Manulife Investment Management is the brand for the global wealth and asset management segment of Manulife Financial Corporation. Our mission is to make decisions easier and lives better by empowering investors for a better tomorrow. Serving more than 17 million individuals, institutions, and retirement plan members, we believe our global reach, complementary businesses, and the strength of our parent company position us to help investors capitalize on today’s emerging global trends. We provide our clients access to public and private investment solutions across equities, fixed income, multi-asset, alternative, and sustainability-linked strategies, such as natural capital, to help them make more informed financial decisions and achieve their investment objectives. Not all offerings are available in all jurisdictions. For additional information, please visit manulifeim.com.

I discussed Boldyn, formerly known as BAI Communications, before my summer break in 2022 here, stating this:

[...] CPP Investments, AIMCo and Manulife announced they will increase their commitment to BAI Communications to support acquisition-led growth plans. You can read the full press release for details and I note the following:

“CPP Investments sees significant opportunities as global digital infrastructure develops in scope and complexity, driven by consumer demand for connectivity and rapidly-growing data rich content,” said Scott Lawrence, Managing Director and Head of Infrastructure, CPP Investments. “As a leading provider in the space, BAI is very well placed to capture these market opportunities, and we believe our increased financial commitment to BAI will continue to generate long-term and sustainable returns on behalf of the CPP’s contributors and beneficiaries.”

Since 2009, CPP Investments has been a majority shareholder in BAI (with an 86% position) and has committed approximately C$3 billion to the BAI platform, with AIMCo as a minority investor. In the fourth quarter of 2021, Manulife Investment Management, on behalf of its clients, partnered with BAI to acquire a minority interest in its digital infrastructure assets in the United States.

“AIMCo is proud to support BAI in its agreed acquisition of ZenFi Networks, a recognized innovator in the provision of digital infrastructure solutions, on behalf of our clients,” said Ben Hawkins, Head, Infrastructure, Renewables & Sustainable Investing, at AIMCo. “The demand for these solutions in the United States shows no signs of slowing. This latest transaction is the realization of BAI’s management team positioning the company for sustainable growth. We are pleased to have this opportunity to partner with CPP Investments and Manulife Investment Management to drive long-term value.”

“We continue to see strong tailwinds for the digital infrastructure sector with increased mobile and fixed data usage requiring considerable investment in communications infrastructure to enabling better connectivity,” said Daniel Neil, Director, Infrastructure Investments, Manulife Investment Management. “Manulife Investment Management is pleased to support the growth of BAI’s platform. We believe that the agreed acquisition of ZenFi strengthens BAI’s position as an innovator of digital infrastructure in the United States.” The ZenFi transaction is subject to customary regulatory clearances and is expected to close in the fourth quarter of the calendar year.

Digital infrastructure is critically important and a function of increased mobile and fixed data usage and CPP Investments has led the way on the BAI platform:

Since 2009, CPP Investments has been a majority shareholder in BAI (with an 86% position) and has committed approximately C$3 billion to the BAI platform, with AIMCo as a minority investor. In the fourth quarter of 2021, Manulife Investment Management, on behalf of its clients, partnered with BAI to acquire a minority interest in its digital infrastructure assets in the United States.

It doesn't surprise me that all three organizations are now fully supporting Boldyn's acquisition of Texas-based Apogee Telecom, one of the largest providers of on-campus connectivity infrastructure in the US higher education industry.

With the rise of artificial intelligence, digital infrastructure and data centers remain a very hot area in infrastructure and this particular sector is relatively recession-proof.

Boldyn has been expanding nicely, announcing back in November that it acquired Spanish towerco Cellnex’s private network business for an as of yet undisclosed fee:

The acquisition primarily covers Edzcom, a Finland based company that that designs, builds, and operates private 4G and 5G networks.

Edzcom’s mobile private network solutions offer wireless connectivity for enterprise automation, robotics, and real-time remote control and monitoring.

The acquisition means that Boldyn expands its neutral host European presence to new markets in in Finland, Spain, Germany, Sweden and France.

Boldyn said it will now be better equipped to provide existing customers with private networks solutions in Europe and the US.

“Boldyn Networks is leading the way in bringing private networks to our customers so that they can meet all their operational and connectivity challenges”, said Igor Leprince, Group CEO of Boldyn Networks.

“Edzcom’s team capabilities, impeccable reputation and recognised expertise are an important addition to our team to capture the potential of this market across continents. From venues and wind farms to ports and manufacturing sites, we are building upon being the partner of choice for 5G private and converged network infrastructure projects,” Leprince continued.

Edzcom’s current projects are predominantly focused on industrial clients in manufacturing, ports, oil and gas, energy generation, and mining. It has experience of over 50 implementations across the Nordics and other European markets.

“Cellnex has enabled us to expand from the Nordics to the largest countries in Europe. We are excited about the opportunity to continue our rapid growth now under Boldyn Networks,” Mikko Uusitalo, CEO of Edzcom said.

“Boldyn is a great company who is now acquiring a strong, senior team with experiences from over 50 deployments across the UK and Europe. We share the same vision and I am convinced that now as one team we’ll consolidate our market leadership in bespoke private mobile networks, expand geographically and stay committed to customer excellency,” Uusitalo said.

Boldyn said that Edzcom’s solutions helps unlock productivity and growth and offers continuity and security for business-critical operations.

Research from GSMA conducted in June 2023 has suggested industrial private 5G network revenue opportunities could reach $109.4B globally by 2030.

The transaction is subject to regulatory and other consents and is expected to close in Q1 2024.

DLA Piper acted as legal advisor to Boldyn Networks. Bird & Bird acted as legal and PWC as financial and tax advisor to Cellnex Telecom and Edzcom.

That's why CPP Investments and its partners continue to nurture the growth of this company.

Below, officially launching at the end of June 2023, Boldyn Networks delivers the advanced shared network infrastructure needed for a smart, inclusive, and sustainable future. From interconnected transit to venues, and enterprises to smart cities, they enable new possibilities in the way people live, work and play.