Surf Broadband Solutions (“Surf Broadband,” “Surf” or the “Company”), the premier fiber-based high-speed broadband provider in the Great Lakes region, today announced that Bain Capital Credit, LP will acquire a majority stake in the Company and is committing significant growth capital to accelerate its fiber optic network expansion. The Company will continue to operate under the direction of its current leadership team, many of whom are significant investors in the business. Post Road Group, Surf’s current majority shareholder, will remain an investor alongside Bain Capital Credit and further capitalize the Company’s growth plans. Financial terms of the private transaction were not disclosed.
Surf Broadband provides predominately fiber-based, high-speed broadband to residential subscribers, businesses, educational institutions, and municipalities across Indiana, Illinois, and Michigan. Ensuring broadband is delivered to those who need it most, Surf Broadband works with local schools and economic development offices to identify the pressing needs of the communities in which the Company operates. With Bain Capital Credit and Post Road Group’s financial and operational support, Surf Broadband will accelerate its rollout of fiber-to-the-premises (FTTP) services to underserved areas across the Great Lakes region.
“We are excited to embark on our next phase of expansion with experienced investment partners who share our vision for building Surf Broadband into a leading FTTP provider with a state-of-the-art network, differentiated customer service and an unmatched local presence,” said Gene Crusie, Chief Executive Officer of Surf Broadband. “COVID-19 has confirmed what many of us have known for years – high-speed broadband is the lifeblood of local communities across the country and an important driver of economic growth. Partnering with Bain Capital Credit and Post Road Group will allow us to invest in our fiber-optic network to bring broadband technology to as many underserved communities as possible.”
“The transition to remote work and e-learning has served to underscore that fast and reliable internet service is no longer a luxury but a necessity. We believe the demand for broadband connectivity and data consumption will only continue to increase in the years ahead,” said Brian Hirschfeld, a Managing Director at Bain Capital Credit. “Surf Broadband is at a key inflection point in its evolution and we look forward to partnering with Gene and his talented team to further enhance the Company’s strategic capabilities. Surf is well-positioned to further capitalize on attractive growth opportunities while strengthening its commitment to bridging the digital divide across the Midwest,” added Anthony Sorrentino, a Vice President at Bain Capital Credit.
“We are excited to again partner with Gene and the Surf team to deliver best-in-class broadband to customers across the region,” said Andy Runk, Managing Director at Post Road Group. “Bain Capital Credit’s involvement will be transformative to Surf’s rapid acceleration of fiber deployment that will benefit communities across the region.”
The transaction is expected to close during the third quarter of 2021 and is subject to customary closing conditions, including requisite regulatory approvals. Houlihan Lokey is serving as financial advisor to Surf Broadband in connection with this transaction. Perkins Coie LLP is serving as legal counsel to Surf Broadband. Kirkland & Ellis LLP is serving as legal counsel to Bain Capital Credit.
