Blue Owl Capital Expands its Portfolio with South Reach Networks
Recently, it was announced that Intermetro Fiber LLC, operating publicly as South Reach Networks ("SRN"), a well-established telecommunications infrastructure provider, has been acquired by a fund managed by Blue Owl Capital's Digital Infrastructure strategy. This move marks a strategic expansion for Blue Owl as it aims to enhance its fiber network capabilities.
South Reach Networks is renowned for its extensive fiber optic infrastructure, spanning 370 miles across the region. The network connects critical points from Jacksonville to Miami and includes five colocation edge facilities owned by SRN along this route. Currently, the infrastructure is operational or close to 40 data centers, colocation facilities, and cable landing stations. With this acquisition, Blue Owl plans to invest significantly, aiming to develop new constructions throughout the SRN network.
Scott Bergs, who is the CEO of another Blue Owl portfolio company, Dark Fiber and Infrastructure (DF&I), will also take on the role of CEO at SRN. This move is expected to create synergies within the company's operations along the east coast, particularly in Virginia and Maryland. The acquisition is anticipated to bolster Blue Owl's capacity in addressing the growing demands of hyperscale and enterprise customers.
Bergs expressed his enthusiasm about the acquisition, stating that South Reach Networks has established itself as a premier communications infrastructure provider in the area. He emphasized their commitment to expanding their fiber offerings to meet the increasing demand extending from Jacksonville to Miami and beyond.
Mike Sevret, the Chief Revenue Officer at South Reach Networks, expressed pride in the achievements of his team over the years. He conveyed excitement about the opportunity to grow under Blue Owl's ownership, which he sees as a pathway to expand their digital footprint.
Chris Jensen, Managing Director for Digital Infrastructure at Blue Owl, disclosed his excitement to support South Reach Networks in its future expansion efforts within Florida. He highlighted the Southeast as a key region for their hyperscale customers, indicating a strong focus on leveraging SRN's strengths to facilitate growth in the area.
Akin Gump Strauss Hauer & Feld LLP provided legal advice to Blue Owl during this deal, while Winston & Strawn LLP, along with Bank Street Group LLC, assisted Turning Rock Partners and South Reach Networks.
About South Reach Networks
South Reach Networks is a telecommunications infrastructure provider committed to building, owning, and operating its Metro and Long-Haul Fiber Optic Network. Their robust network extends 370 miles along the coast, ensuring connectivity with Carrier Class and Neutral Data Centers. SRN provides global and domestic reach to a diverse range of clients, including carriers, subsea cable providers, and enterprise operators.
About Blue Owl
Blue Owl (NYSE: OWL) is a prominent asset manager focused on redefining alternative investments. With over $273 billion in assets under management, as of the end of March, Blue Owl invests across various multi-strategy platforms, including Credit, Real Assets, and GP Strategic Capital. The firm is positioned to deliver strong performance and risk-adjusted returns, providing unique capital solutions for businesses, institutional investors, and individual clients.
With a dedicated team of over 1,200 professionals worldwide, Blue Owl is driven by a vision to create exceptional value and expand its reach across the investment landscape.
Frequently Asked Questions
What is the main purpose of the acquisition?
The acquisition aims to enhance South Reach Networks' fiber infrastructure services and expand Blue Owl's capabilities across Florida.
Who will lead South Reach Networks after the acquisition?
Scott Bergs, CEO of Dark Fiber and Infrastructure, will also take on the role of CEO at South Reach Networks.
What are the implications of this acquisition for customers?
The acquisition is expected to provide increased service capacity and improved infrastructure for hyperscale and enterprise customers.
How does South Reach Networks contribute to Blue Owl's portfolio?
South Reach Networks adds significant fiber infrastructure and market presence in Florida, aligning with Blue Owl's strategic growth initiatives.
What are Blue Owl's investment focuses?
Blue Owl focuses on credit, real assets, and strategic capital investments, catering to a range of businesses and investment needs.
