CBRE Investment Management Fund Signs Agreement To Acquire Gateway Fiber
A fund sponsored by CBRE Investment Management has entered into a definitive agreement to acquire Missouri-based fiber-to-the-home provider Gateway Fiber (“Gateway”) from Crosstimbers Capital Group as part of the firm’s Private Infrastructure strategy.
Gateway, founded in 2019, is headquartered in Wright City, Missouri, and is a fiber-to-the-home owner, operator and developer covering 12 cities in Missouri. Gateway seeks to positively impact the communities it serves by delivering superior internet service through its fiber network that enables it to build connected communities, advance economic development and bridge the digital divide.
“We’re excited to expand our investment in the fiber-to-the-home space through partnership with Gateway management, ” said Noi Spyratos, Managing Director, Private Infrastructure at CBRE Investment Management. “We believe we can bring significant value to Gateway, including through our portfolio company WANRack, which owns and operates an extensive network of middle-mile fiber across the U.S.”
Providing communities with reliable, high-speed internet is a priority in the United States, as evidenced by the over $42B of federal funding earmarked for broadband deployment within the new Infrastructure Investment and Jobs Act. Gateway has a strong track record of partnering with federal, state and local government to bring its fiber network to unserved and underserved communities. In the last 18 months, Gateway has been awarded three government grants totaling $37M.
“Our mission is to bring a best-in-class internet experience to as many homes and businesses as possible,” said Heath Sellenriek, CEO of Gateway. “This new partnership with CBRE IM will allow us to continue investing in our communities, our people and our valued customers.”
Chris Surdo, President and CFO of Gateway, added, “As we prepare for this new chapter, we’re thankful to our dedicated employees and partners who have supported us in getting to this point.”
The acquisition is expected to close in February 2023 following regulatory approvals. CBRE Investment Management was advised in this transaction by financial advisor TD Securities, legal counsel Morgan, Lewis & Bockius, commercial advisor ATLANTIC-ACM and technical advisor Broadband Success Partners. Gateway was advised in this transaction by financial advisor Bank Street and legal counsels Jackson Walker and K&L Gates.
Source: CBRE Investment Management