Cox Communications said it has completed its purchase of the commercial services segment of Charlotte, North Carolina-based fiber infrastructure provider Segra. Terms of the deal were not disclosed, but some published reports estimated it was worth about $3 billion.
Segra serves commercial enterprise and carrier customers in nine states in the Mid-Atlantic and Southeast regions of the country. Cox first announced the deal in April.
Although Cox did not disclose the price, In a press release the company said the deal was one of the largest in its history and supports its ongoing focus on strategic infrastructure investments and its continued commitment to the business services market. Bloomberg said back in April that it could be worth more than $3 billion, including assumed debt.
“Cox has invested more than $15 billion in its communities through infrastructure upgrades in the last decade and acquiring Segra's commercial services business underscores our commitment to continue to make big bets in the business services space,” said Cox incoming president Mark Greatrex in a press release. “An expanded geographical presence, greater network capacity and more services will be an immediate benefit for customers of both companies and will better enable us to meet the significant demand for our solutions.”
Segra's existing management team will continue to lead the Segra enterprise and carrier organization following the acquisition, will retain the Segra brand and operate as a standalone business within the Cox family of companies.
“Segra’s primary focus will continue to be on serving our customers,” Segra CEO Timothy Biltz said in a press release. “Our dedicated team of employees is our most important resource. Through them, we deliver a superior customer experience and demonstrate the value of our state-of-the-art fiber infrastructure. We’ll continue to invest in our employees and our world-class network in order to exceed our customer’s expectations. Joining Cox strengthens our ability to meet the growing demand for our products and services, which are mission critical to our customers. The Segra and Cox teams have been working diligently together to plan for a successful day one and beyond.”
Mike Farrell is senior content producer, finance for Multichannel News/B+C, covering finance, operations and M&A at cable operators and networks across the industry. He joined Multichannel News in September 1998 and has written about major deals and top players in the business ever since. He also writes the On The Money blog, offering deeper dives into a wide variety of topics including, retransmission consent, regional sports networks,and streaming video. In 2015 he won the Jesse H. Neal Award for Best Profile, an in-depth look at the Syfy Network’s Sharknado franchise and its impact on the industry.
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