On Monday, BAI Communications, the global digital infrastructure provider that is majority-owned by the (nearly) $500 billion Canadian pension fund CPP Investments, announced that it will acquire Mobilitie, the largest privately held telecommunications infrastructure provider in the United States.
The deal adds to an already significant presence for BAI in North America, where it provides cellular and Wi-Fi service across several major infrastructure projects, including the New York City subway system, under its majority-owned subsidiary Transit Wireless. According to a statement from the company on Monday morning, the decision to buy Mobilitie will support its goal of becoming one of the leading connected infrastructure 5G players in North America, and globally.
Mobilitie’s portfolio includes existing agreements to provide wireless communications to the public transit systems in Seattle and the San Francisco Bay Area. 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. BAI current provides neutral host infrastructure in the major subways of New York, Toronto, and Hong Kong, and in Australia with one of the most extensive broadcast networks in the world.
“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,” BAI Communications Group CEO Igor Leprince said in a statement on the deal.
“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 capitalize on the growing prioritization of connected infrastructure in regions such as the UK and Europe…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 added.
Transport for London
Concurrent with the deal announcement, Canadian pension funds CPP Investments and Alberta Investment Management Corporation (AIMCo) announced a C2.4 billion (about $1.9 billion) follow-on commitment to BAI to support the acquisition of Mobilitie, as well as a recently announced partnership with Transport for London (TfL) in the U.K., along with other initiatives.
BAI’s new partnership with TfL will deliver high speed mobile coverage across the London Underground by the end of 2024, alongside a new full-fibre network to provide London’s homes and businesses with faster internet and better connectivity. The technology will support 4G and 5G roll out and will be the most advanced of its kind in the world, helping to support London’s economic growth.
“We continue to see strong potential in BAI Communications’ vision. BAI has grown from a leading domestic player in Australia to a global provider of cutting edge digital infrastructure solutions across the U.S., Canada, Hong Kong and the U.K.,” said Scott Lawrence, Managing Director and Head of Infrastructure at CPP Investments. “The acquisition of Mobilitie and establishment of a long-term partnership with TfL represent attractive opportunities for CPP Investments to increase its financial commitment to BAI and the digital infrastructure sector more broadly and in doing so generate long-term sustainable returns for our contributors and beneficiaries.”
CPP Investments has been a majority shareholder in BAI (86 percent) since 2009, with AIMCo as a minority investor.
“The past year has demonstrated the critical importance of digital infrastructure in all aspects of our lives,” said Ben Hawkins, Senior Vice President, Infrastructure & Renewable Resources at AIMCo. “BAI has been an important digital infrastructure holding in our clients’ portfolios that is further strengthened by its acquisition of Mobilitie and the contract awarded by TfL. The combination of these initiatives capitalize on the enhanced wireless connectivity opportunity in the U.S., the U.K. and around the globe. We are pleased to work with CPP Investments in increasing our commitment to BAI in support a range of growth initiatives.”
