HRL Morrison to buy FiberLight from Thermo

A consortium led by HRL Morrison Co. said it had agreed to acquire US fiber infrastructure provider FiberLight, marking the firm's first North American digital-infrastructure bet.

The companies said in a statement Thursday that the Australian Retirement Trust and a client of UBS Asset Management are part of the consortium that agreed to buy FiberLight from Thermo Companies. The transaction values FiberLight at $1 billion including debt, according to people with knowledge of the matter, who asked not to be identified because the financial details are private.

Morrison plans to expand Atlanta, Georgia-based FiberLight's network, which currently comprises 18,000 route miles of fiber infrastructure, which serves states including Texas, Virginia and Florida.

The US needs to add fiber to service areas that do not have high-speed access, Perry Offutt, Morrison s head of North America, said in an interview that FiberLight has opportunities to grow organically or through acquisitions. Offutt said that we can consolidate a pretty fragmented industry.

Morrison is an ideal partner because of the belief that fiber infrastructure is the key to bridging the digital divide and rapid expansion needed to meet the extraordinary long-term demand, said Christopher Rabii, FiberLight Chief Executive Officer.

Representatives for Morrison and UBS Asset Management didn't give any comment on the financial details of the deal. A Calstrs representative declined to comment, and a Thermo representative wasn't immediately available to comment.

Morrison, which opened a New York office last year and had over $17 billion in assets under management as of March 31, has made two other North American bets: Longroad Energy and Clearvision Ventures. The firm has backed companies like Fore Freedom, Canberra Data Centre, Vodafone New Zealand and Amplitel Towers outside the region. The firm partnered with Brookfield Infrastructure Partners to acquire Australian fiber company Uniti Group Ltd earlier this year.

In part due to the perceived stability of cash flows, digital infrastructure has been a focus for investment firms, pension funds and sovereign wealth funds.