Colony Capital’s digital infrastructure investment platform, Digital Colony, has recently announced that it plans to undertake a strategic recapitalization of the Beanfield Metroconnect, which is essentially a provider of independent telecommunications infrastructure across Canada. The company has also bought the Aptum Technologies’ metro network, which is a global cloud as well as a managed services provider, planned as a part of the recapitalization.
Apparently, the strategic recapitalization involves a financing of about C$255 million, placing Beanfield in a position where it can capitalize on several new industry sector and revenue opportunities. With the help of the acquisition of the metro network, Beanfield will be improving the fiber solution capabilities along with connectivity services in Toronto while also helping expand its presence in Montreal after the recent purchase of the regional telecom service company, OpenFace Inc.
In association with Digital Colony, Beanfield has majorly scaled the platform to smoothly connect businesses and individuals in two of the largest urban markets in Canada. Digital Colony has made a large number of investments in the previous year, post which it has witnessed a ten-fold growth in its network footprint – from about 400 route KM to over 4,000 in both the markets.
The ability of the firm to provide services to buildings has increased six-fold from 550 buildings to about 3,200 buildings.
Digital Colony’s Managing Director, Stevenson Sonnenstein said that the transaction shows the company’s approach to underwriting as well as its commitment to driving growth in different businesses.
Sonnenstein further added that recent recapitalization has underpinned the company’s confidence in the perpetuating opportunities for growth which would come from the unprecedented focus on the customer experience along with the high-quality services that form the core aspect of Beanfield’s business.
The financing that Digital Colony has secured is inclusive of a revolving credit facility and a first lien term loan, which the firm has acquired by leveraging the relationships it has with major institutional vendors.