Industry News
2025 Prediction: More Fiber Company Consolidation
Views : 774
Author : JIUZHOU
Update time : 2025-01-10 10:00:39
The fiber broadband market could see more consolidation in the coming year, according to research from a consulting firm.
In an August 2024 survey, the consulting firm found that:
More than 400 small fiber providers could be merged or acquired by larger providers and private equity firms.
Expect some consolidation in 2025, with more in 2026 and 2027.
The survey was conducted among 60 fiber industry executives, private equity firms and investors.
93% of those surveyed believe consolidation is occurring or imminent.
70% of respondents expect industry consolidation activity to increase in the next year.
Overall, there are about 1,900 "small" fiber companies in the U.S., the consulting firm said.
Of those, 1,000 are part of electric cooperatives or energy companies.
Of the remaining 900 companies, the firm estimates that about 400 are "meaningful M&A candidates."
The consulting firm's partner and managing director:
The 400 companies will include different types of businesses. These include private equity-backed fiber firms, fiber builders, and utilities. Some utilities want to separate their fiber businesses.
As for acquirers, the consulting firm's partner and managing director said:
He thinks some mid-tier suppliers will merge to buy small companies. At the same time, smaller fiber companies will form strategic groups.
The third acquisition group will be tier-one suppliers acquiring mid-sized companies and enterprise groups.
It is worth noting that the consulting firm found that more fiber companies are looking to sell than buy. The partner and managing director of the consulting firm thinks these companies need a "mindset change." They should focus on making profits instead of just growing.
In an August 2024 survey, the consulting firm found that:
More than 400 small fiber providers could be merged or acquired by larger providers and private equity firms.
Expect some consolidation in 2025, with more in 2026 and 2027.
The survey was conducted among 60 fiber industry executives, private equity firms and investors.
93% of those surveyed believe consolidation is occurring or imminent.
70% of respondents expect industry consolidation activity to increase in the next year.
Overall, there are about 1,900 "small" fiber companies in the U.S., the consulting firm said.
Of those, 1,000 are part of electric cooperatives or energy companies.
Of the remaining 900 companies, the firm estimates that about 400 are "meaningful M&A candidates."
The consulting firm's partner and managing director:
The 400 companies will include different types of businesses. These include private equity-backed fiber firms, fiber builders, and utilities. Some utilities want to separate their fiber businesses.
As for acquirers, the consulting firm's partner and managing director said:
He thinks some mid-tier suppliers will merge to buy small companies. At the same time, smaller fiber companies will form strategic groups.
The third acquisition group will be tier-one suppliers acquiring mid-sized companies and enterprise groups.
It is worth noting that the consulting firm found that more fiber companies are looking to sell than buy. The partner and managing director of the consulting firm thinks these companies need a "mindset change." They should focus on making profits instead of just growing.
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