Macquarie Is Considering a Potential $5 Billion-Plus Altafiber Sale

(Bloomberg) — Macquarie Group Ltd. is beginning to explore strategic options including a sale for Altafiber, the telecommunications carrier formerly known as Cincinnati Bell, as appetite surges for companies offering broadband internet services, according to people familiar with the matter.

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Macquarie, which owns Altafiber through an infrastructure fund managed by its asset management arm, is working with advisers on options for Altafiber, which could fetch more than $5 billion in a sale, said the people, who asked not to be identified discussing confidential information. Macquarie is poised to begin formally soliciting interest in the company next year, one of the people said.

The fiber operator is expected to draw interest from strategic buyers, as well from as private equity firms. No final decisions have been made and Macquarie could opt to hold onto Altafiber, the people said.

Representatives for Macquarie and Altafiber declined to comment.

A deal would add to a flurry of activity as major US mobile carriers buy up fiber-optic assets to diversify from wireless offerings and add capacity for customers’ surging data use. Building new fiber-optic lines is expensive and takes time, which makes existing broadband operators ripe for acquisition.

Verizon Communications Inc. in September announced plans to buy Frontier Communications Parent Inc. for about $9.59 billion to expand its high-speed internet business. T-Mobile US Inc. said in July it would invest in a joint venture with KKR & Co. to buy fiber-optic internet service provider Metronet. Last month, Canada’s BCE Inc. agreed to buy Ziply Fiber for about C$5 billion ($3.5 billion) in cash.

Altafiber’s fiber-optic network spans 16,000 miles in the Midwest, including in Cincinnati. The company said last month that it plans to expand its regional fiber network in Ohio, Kentucky and Indiana. Earlier this year, Altafiber agreed to sell CBTS, which provides IT solutions and services, to TowerBrook Capital Partners.

Macquarie took Altafiber private in 2021 through a vehicle known as Macquarie Infrastructure Partners V, after topping a previous offer from Brookfield Infrastructure Partners.