BAI Communications (BAI) will acquire Mobilitie in a move that represents a major expansion of BAI’s business in North America where it provides cellular and Wi-Fi connectivity across large infrastructure projects, including the New York City subway system, under its majority owned business Transit Wireless.
It significantly extends BAI’s footprint coast-to-coast across a growing connected infrastructure market. The transaction is subject to customary regulatory clearances and is expected to close in the third quarter of this year.
The acquisition of Mobilitie is a significant step in BAI Communications’ growth strategy, supporting its move towards becoming one of the leading connected infrastructure 5G players in North America, as well as globally.
The deal brings together a complementary offering between the two organizations, enabling BAI to immediately extend and diversify its solution and service offering beyond its current global markets. It marries Mobilitie’s assets and operations across 5G outdoor and indoor wireless infrastructure, worldwide credibility in small cell deployment and its work with transit operators across major U.S. cities with BAI’s expertise in delivering communications infrastructure in dense urban and transit environments.
Combining the expertise, scale and infrastructure portfolios of both businesses positions BAI to support telecommunications operators and municipalities in the U.S. and its other markets internationally to realize the smart city opportunities that 5G services are offering worldwide.
Igor Leprince, Group CEO of BAI Communications, said, “BAI’s acquisition of Mobilitie establishes us as a leading telecommunications infrastructure provider in the United States and the most relevant provider of public transit wireless connectivity solutions in North America. This reflects our ambitions for the U.S., as well as the other markets in which we operate globally and puts us in the perfect position to capitalize on the growing prioritization of connected infrastructure in regions such as the UK and Europe. The scale and strong relationships with large venue operators and mobile network operators that Mobilitie brings fits perfectly with BAI’s existing leadership in connected transit and infrastructure.
“Mobilitie, like BAI, places a high priority on offering technical expertise and impeccable delivery to its customers, alongside its deep commitment to exceptional customer service. This alignment and the complementary fit of our offerings make this an exciting move for BAI and our customers around the world. It strongly positions us to scale and extend the work we are already delivering,” he added.
Backed by Mobilitie’s Founder and Chairman Gary Jabara and Shamrock Capital, Mobilitie’s portfolio includes existing agreements to provide wireless communications to the public transit systems in Seattle and the San Francisco Bay Area. The acquisition will also add Mobilitie’s broader portfolio of 220 venues across 39 states, 10,000 small cells across 45 states and 300 tower sites across 14 states to BAI’s operations. This builds on BAI’s existing success providing neutral host infrastructure in the major subways of New York, Toronto, Hong Kong and in Australia. It will also support BAI’s expansion in the United Kingdom and Europe as it pursues opportunities.
“We’re very excited about this transaction, which augments Mobilitie’s market impact worldwide,” said Jabara. “BAI’s significance as a 5G player, together with Mobilitie, will enable unprecedented support of US wireless carriers. It puts us on a clear, long-term path to greatly accelerate business and help our customers, especially the mobile network operators.”
He concluded, “Combining BAI’s connectivity solutions and international presence with Mobilitie’s North American assets, including our nationwide footprint of tier one venues, public transit systems in the San Francisco Bay Area and Seattle, along with 10,000 small cells and thousands of New York small cells that are in and around BAI’s existing assets, makes us better positioned for 5G growth than anyone else in North America.”
J.P. Morgan Securities LLC served as exclusive financial advisor to BAI Communications and Latham & Watkins LLP served as legal advisor.
Morgan Stanley & Co. LLC served as exclusive financial advisor to Mobilitie and Goodwin Procter LLP served as legal advisor to Mobilitie LLC.
Cooley LLP served as legal advisor to Shamrock Capital.