GI Partners, a data infrastructure business investor, reached an agreement to acquire DQE Communications from its parent company, Duquesne Light Holdings (DLH). The transaction provides DQE with additional resources to expand as it continues to provide connectivity services as a standalone fiber infrastructure provider.
Formed in 1997, DQE Communications extended its geographic reach beyond Pittsburgh, evolving into a regional independent fiber provider that offers infrastructure-oriented communication services. This includes a 4,700-route mile fiber network that connects more than 3,000 on-net businesses, towers and data centers, with multiple expansion projects underway in strategically adjacent markets. The transaction will bolster DQE’s expansion of its fiber network operations to allow it to capitalize on demand for high-capacity, carrier-class bandwidth services by the enterprise, carrier, wireless, education, municipal and government sectors.
“We are excited to partner with the DQE team, which has built the region’s most advanced carrier-grade, secure and reliable network serving preeminent enterprise and carrier customers,” said Brendan Scollans, Managing Director and Co-Head of GI Data Infrastructure. “Since its inception, DQE has been dedicated to deploying best-in-class network infrastructure, and we look forward to working with the DQE team to grow the platform in the years ahead.”
“This is a great opportunity for DQE. The investment by GI Partners uniquely positions DQE as a scaled and trusted strategic network provider,” said Jim Morozzi, CEO of DQE Communications. “GI Partners is an experienced and knowledgeable investor in digital infrastructure, and we look forward to partnering with them to accelerate our network solutions and geographic reach while remaining fully committed to delivering exceptional service that our customers have come to expect from us for over 25 years.”
“We are proud of DQE’s growth in recent years and see this sale as an important next step in their future. We are committed to continuing our investment into the growth of the DQE Communications business leading up to close. Once the transaction is complete, we plan to reinvest proceeds from the sale back into Duquesne Light Company and its affiliate, The Efficiency Network (TEN),” said Kevin Walker, president and CEO, Duquesne Light Holdings.
The transaction is subject to regulatory approvals and other customary terms and conditions and is expected to close in the first half of 2024.
For more info, click here.