Xplornet being bought by U.S. equity firm

The entrance to Xplornet's call center at 709 Cotton Mill Street in Cornwall, Ont. The company announced on Thursday, Feb. 27, 2020 that it's being bought by a U.S. equity firm. (Newswatch Group/Bill Kingston, File)

WOODSTOCK, N.B. – An American equity firm is buying a controlling stake in Xplornet, the company announced Thursday.

The New Brunswick company, which has a call center in Cornwall, will be acquired by New York-based Stonepeak Infrastructure Partners.

The deal will see Xplornet board chairman Steve Weed and WaveDivision Capital remain as investors in the company.

Terms of the agreement have not been disclosed though reports from Bloomberg say it’s worth about $2 billion U.S., including debt.

The company says the deal “will further Xplornet’s plan to accelerate investment in its national hybrid fiber wireless and satellite broadband network for rural Canadians.” Last year, it announced a $500 million investment over five years.

The deal still needs approval but will set the company up to have a “strong balance sheet to execute its plan,” the company said.

Stonepeak has a track record of investing in telecommunications infrastructure around the world.

Xplornet’s Cornwall call center on Cotton Mill Street officially opened in October 2017. It recently did a hiring recruitment for 24 employees and has over 130 workers.