Apollo Global Management Inc. has, through funds managed by its affiliates, agreed to invest $200 million of preferred equity in FirstDigital Telecom, a fiber-based carrier in the western United States.
The strategic investment is part of FirstDigital’s growth strategy, inclusive of its recent acquisition of Veracity Networks LLC.
“FirstDigital is a leading fiber operator in the southwest region, and we’re excited to leverage our telecoms infrastructure expertise and capital to help the company grow,” said Dylan Foo, senior partner and co-fead of infrastructure at Apollo. “This investment provides FirstDigital with greater financial flexibility and strategic advice to bolster their position within the dynamic and competitive telecommunications industry, especially at a time where bridging the national digital divide is more important than ever. We look forward to supporting Wesley and his team, helping fuel the Company’s long-term growth plans.”
Apollo’s Andrew Kirby added, “Against a backdrop of strong industry tailwinds, we believe that FirstDigital is well positioned to capture a substantial market opportunity. This investment underscores our belief in the leading role that fiber operators will play in providing critical connectivity to enterprises and communities alike.”
“We see strong growth opportunities across our full suite of telecommunications services and are confident that the strategic investment by the Apollo Funds will support a transformative period for our company, starting with the integration of Veracity Networks,” said FirstDigital founder, president and CEO Wesley McDougal. “Apollo knows our business and industry well, and we’re excited to have their support as we continue to build our network, solutions and high-capacity services for our business customers.”
Evercore acted as financial advisor and Simpson Thacher & Bartlett LLP as legal advisor to the Apollo Funds. Houlihan Lokey acted as financial advisor and Parr, Brown, Gee & Lovelace as legal advisor to FirstDigital.