Horizon Telcom, a fiber broadband provider, today announced that GCM Grosvenor, an alternative asset manager, will acquire a significant ownership stake in the company. Specifically, GCM Grosvenor is investing into Horizon Telcom through its Labor Impact Strategy, part of its ESG and impact investing funds. GCM Grosvenor’s investment in Horizon Telcom comes alongside existing lead investor Novacap.

Presently, Horizon Telcom’s shareholders include Novacap, a Canadian private equity firm, through its $840m Canadian dollar Novacap TMT V fund, as well as equity co-investors HarbourVest, Hamilton Lane, and RCP Advisors. Collectively, this consortium has been investors in Horizon Telcom since June 2018.

Horizon Telcom – Overview

Horizon Telcom is a facilities-based, fiber-optic broadband service provider based in Columbus, Ohio. The company’s fiber infrastructure primarily serves southern and eastern Ohio, as well as the Indianapolis metropolitan markets and parts of West Virginia and Pennsylvania.

Horizon Telcom Fiber Network Map

Network

Horizon Telcom operates 5.5k+ route miles of fiber, connects 1.6k+ wireless sites, and 1.4k+ enterprise locations. Through this network, the company offers Ethernet, Dedicated Internet Access (i.e., private connection), Hosted Voice & UCaaS (unified communications as a service), dark fiber, wavelength, and data center connectivity services.

In terms of data center connectivity, Horizon Telcom’s network has key points-of-presence (PoPs) in data centers throughout the Midwest. Specifically, the company has points-of-presence (PoPs) at:

  • Cologix: in Columbus at its COL1, COL2, and COL3 facilities
  • Cyxtera: in Columbus at its CMH1 facility
  • DataBank: in Pittsburgh at its PIT1 facility
  • Equinix: in Chicago at its CH1, CH2, and CH4 facilities
  • 365 Data Centers: in Indianapolis at its IN1 facility

Customers

Horizon Telcom serves enterprises, carriers (i.e., wholesale), government, healthcare, education, and residential customers throughout Ohio and the greater Midwest region.

Strategy

GCM Grosvenor’s investment will accelerate Horizon Telcom’s fiber expansion efforts in Ohio and the greater Midwest region. For example, the company recently completed an initial greenfield fiber build in Circleville, Ohio.

Currently, Horizon Telcom is in the process of deploying six more fiber-to-the-home (FTTH) builds. Additionally, the company is seeking out further markets for development throughout the state of Ohio.

Finally, Horizon Telcom’s growth in Ohio and the greater Midwest region will also include fiber-based connectivity to residential customers.

Transaction Advisors – GCM Grosvenor, Horizon Telcom, Novacap

GCM Grosvenor’s legal advisor was Morgan Lewis & Bockius.

Horizon Telcom and Novacap’s legal advisor was Paul Hastings.

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