Cox Communications Inc. is buying the commercial unit of fiber provider Segra, the Charlotte-based company that acquired NorthState Communications in 2019.
Cox is buying Segra’s division serving large business customers. Terms of the deal weren’t disclosed. Segra, backed by private equity firm EQT AB of Stockholm, is keeping its residential business unit.
EQT Infrastructure will retain ownership of residential and small-to-medium sized business business operating under the NorthState and Lumos Networks brands and employing a fiber-to-the-premise (FTTP) strategy.
Diego Anderson, senior vice president and general manager of Segra operations, will serve as chief executive officer of the new company. The company plans to significantly accelerate its build-out of fiber in many underserved areas of North Carolina, Virginia and other markets in 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.
“We’re thrilled to be part of this exciting growth story and further our commitment to expanding access to high-speed broadband for consumers and small businesses across the mid-Atlantic region,” stated Jan Vesely, partner and investment advisor at EQT Partners. “We have been impressed by the management team’s success in bringing fiber to underserved areas and look forward to supporting an accelerated build-out going forward.”
Segra acquired NorthState Telecommunications, founded in 1895 as High Point Telephone Exchange, in December 2019 in deal valued at about $240 million. North State was one of the nation’s 15 largest integrated communications companies when it was acquired, serving High Point, Thomasville, Archdale, Randleman, Jamestown, Trinity, Greensboro and Kernersville.
Atlanta-based Cox Communication is the third-largest cable provider in the U.S. It is the largest division of privately held Cox Enterprises Inc.
“Demand for broadband infrastructure will continue to grow, making fiber an attractive area for long-term investment,” Cox Communications Chief Executive Officer Pat Esser said in a statement.
