$500M Joint Venture Fiber Transaction Creates Social Impact In Underserved Communities Across the US

The pandemic emphasized how critical high speed internet connectivity is to education, commerce, and day-to-day living, exposing a great digital divide among Americans who have access and those who don't. 

Seyfarth's client, SiFi Networks saw an opportunity to close this divide and position itself for future expansion. SiFi is a UK-based company that designs, constructs, and operates fiber-optic systems. Our global corporate team represented SiFi in structuring and negotiating a $500 million joint venture with Dutch pension manager APG.  The joint venture was created to fund opportunities to provide fiber-to-the-home (FTTH) across cities in the United States.

With $500 million in equity, which may be further supplemented with debt in the future, the joint venture is well positioned to “contribute to bridging the digital divide in the US where over one-third of households do not have access to high-speed internet by offering fiber connections to those underserved communities,” the company press release noted. The fiber technology and faster internet speeds also helps to attract and retain local businesses.

This transaction supports SiFi’s business goal to enable more access to “future proof” connectivity and will provide “smart city solutions aimed at improving the quality of life while generating revenue and savings for the cities.” Seyfarth also handled two related investment transactions for SiFi and the Smart City Infrastructure Fund, which is also backed by APG and managed by Whitehelm Capital, to construct and operate fiber-optic networks for the cities of Simi Valley and Rancho Cordova in California.