Gateway Fiber and WANRack Unite to Connect More Communities in Strategic Merger
Gateway Fiber and WANRack have announced a strategic merger to create a national FTTX platform serving 25 US states. Gateway Fiber, founded in 2019, provides FTTP services across Missouri, Massachusetts, and Minnesota, while WANRack, established in 2013, serves school districts and libraries through its E-Rate program and operates in eastern Kansas via its KWIKOM subsidiary.
The merger aims to achieve greater scale, improved operations, and growth opportunities. The combined entity will expand product offerings for small and medium businesses while addressing commercial and wholesale internet needs. CBRE Investment Management is the majority owner of both companies. The transaction is expected to close in H1 2025, pending regulatory approvals.
The new executive team combines leaders from both organizations, with Chris Surdo serving as CEO. Currently, over 50% of US households lack fiber internet access, presenting a significant growth opportunity for the merged company.
Gateway Fiber e WANRack hanno annunciato una fusione strategica per creare una piattaforma FTTX nazionale che servirà 25 stati degli USA. Gateway Fiber, fondata nel 2019, offre servizi FTTP in Missouri, Massachusetts e Minnesota, mentre WANRack, istituita nel 2013, serve distretti scolastici e biblioteche attraverso il suo programma E-Rate e opera nell'est del Kansas tramite la sua filiale KWIKOM.
La fusione mira a raggiungere una scala maggiore, migliorare le operazioni e creare opportunità di crescita. L'entità combinata espanderà l'offerta di prodotti per piccole e medie imprese, affrontando al contempo le esigenze di internet commerciale e all'ingrosso. CBRE Investment Management è il proprietario di maggioranza di entrambe le aziende. Si prevede che la transazione si chiuda nel primo semestre del 2025, in attesa delle approvazioni normative.
Il nuovo team esecutivo riunisce leader di entrambe le organizzazioni, con Chris Surdo che ricoprirà il ruolo di CEO. Attualmente, oltre il 50% delle famiglie statunitensi non ha accesso a internet in fibra, offrendo un'opportunità di crescita significativa per la società risultante dalla fusione.
Gateway Fiber y WANRack han anunciado una fusión estratégica para crear una plataforma FTTX nacional que servirá a 25 estados de EE. UU. Gateway Fiber, fundada en 2019, ofrece servicios de FTTP en Missouri, Massachusetts y Minnesota, mientras que WANRack, establecida en 2013, atiende a distritos escolares y bibliotecas a través de su programa E-Rate y opera en el este de Kansas a través de su subsidiaria KWIKOM.
La fusión tiene como objetivo lograr una mayor escala, mejorar las operaciones y crear oportunidades de crecimiento. La entidad combinada ampliará la oferta de productos para pequeñas y medianas empresas, al mismo tiempo que abordará las necesidades de internet comercial y mayorista. CBRE Investment Management es el propietario mayoritario de ambas empresas. Se espera que la transacción se cierre en el primer semestre de 2025, a la espera de las aprobaciones regulatorias.
El nuevo equipo ejecutivo combina a líderes de ambas organizaciones, con Chris Surdo como CEO. Actualmente, más del 50% de los hogares en EE. UU. carece de acceso a internet de fibra, lo que presenta una oportunidad de crecimiento significativa para la empresa fusionada.
게이트웨이 파이버와 WANRack은 25개 주에서 서비스를 제공하는 국가 FTTX 플랫폼을 구축하기 위한 전략적 합병을 발표했습니다. 2019년에 설립된 게이트웨이 파이버는 미주리주, 매사추세츠주 및 미네소타주에서 FTTP 서비스를 제공하고, 2013년에 설립된 WANRack은 E-Rate 프로그램을 통해 학군 및 도서관에 서비스를 제공하며 KWIKOM 자회사를 통해 동부 캔자스에서 운영됩니다.
이번 합병의 목표는 더 큰 규모를 달성하고 운영을 개선하며 성장 기회를 창출하는 것입니다. 결합된 엔티티는 소규모 및 중간 기업을 위한 제품 제공을 확대하며 상업 및 도매 인터넷 요구 사항을 충족할 것입니다. CBRE 투자 관리가 두 회사의 대주주입니다. 거래는 규제 승인이 완료되는 대로 2025년 상반기 중에 마감될 것으로 예상됩니다.
새로운 집행 팀은 두 조직의 리더를 결합하여 크리스 수르도가 CEO로 활동합니다. 현재 미국 가정의 50% 이상이 섬유형 인터넷 접근이 없으며, 이는 합병된 회사에 대한 중요한 성장 기회를 제공합니다.
Gateway Fiber et WANRack ont annoncé une fusion stratégique pour créer une plateforme FTTX nationale servant 25 États américains. Fondée en 2019, Gateway Fiber fournit des services FTTP dans le Missouri, le Massachusetts et le Minnesota, tandis que WANRack, établi en 2013, sert les districts scolaires et les bibliothèques via son programme E-Rate et opère dans l'est du Kansas à travers sa filiale KWIKOM.
La fusion vise à atteindre une plus grande échelle, à améliorer les opérations et à créer des opportunités de croissance. L'entité combinée élargira son offre de produits pour les petites et moyennes entreprises tout en répondant aux besoins d'internet commercial et de gros. CBRE Investment Management est le principal propriétaire des deux entreprises. La transaction devrait se conclure au premier semestre 2025, sous réserve des approbations réglementaires.
La nouvelle équipe dirigeante combine des leaders des deux organisations, avec Chris Surdo en tant que PDG. Actuellement, plus de 50 % des foyers américains n'ont pas accès à internet par fibre, ce qui représente une opportunité de croissance significative pour la société issue de la fusion.
Gateway Fiber und WANRack haben eine strategische Fusion angekündigt, um eine nationale FTTX-Plattform zu schaffen, die 25 Bundesstaaten der USA bedienen wird. Gateway Fiber, gegründet im Jahr 2019, bietet FTTP-Dienstleistungen in Missouri, Massachusetts und Minnesota an, während WANRack, gegründet im Jahr 2013, Schulbezirke und Bibliotheken über sein E-Rate-Programm bedient und in Ostkanzans über seine Tochtergesellschaft KWIKOM tätig ist.
Die Fusion zielt darauf ab, eine größere Skalierung, verbesserte Abläufe und Wachstumschancen zu erreichen. Das kombinierte Unternehmen wird das Produktangebot für kleine und mittlere Unternehmen erweitern und gleichzeitig die kommerziellen und großhandelsseitigen Internetbedürfnisse ansprechen. CBRE Investment Management ist Mehrheitseigentümer beider Unternehmen. Die Transaktion wird voraussichtlich im ersten Halbjahr 2025 abgeschlossen, vorbehaltlich der regulatorischen Genehmigungen.
Das neue Führungsteam vereint Führungskräfte beider Organisationen, wobei Chris Surdo als CEO fungiert. Derzeit haben über 50 % der US-Haushalte keinen Zugang zum Internet über Glasfaser, was eine erhebliche Wachstumschance für das fusionierte Unternehmen darstellt.
- Expansion to 25 US states increases market presence and revenue potential
- Merger creates operational synergies and cost efficiencies
- Diversification of services across residential, business, and education sectors
- Strong backing from CBRE Investment Management ensures financial stability
- Regulatory approval pending creates execution uncertainty
- Integration challenges between two different business models
- Potential operational disruptions during merger implementation
Insights
This strategic merger represents a significant value-creation opportunity for CBRE Investment Management's infrastructure portfolio. The combination creates a formidable player in the fragmented fiber infrastructure market, with several compelling advantages:
Strategic Synergies & Market Positioning:
- Geographic expansion from 3 to 25 states provides immediate scale and diversification
- Complementary revenue streams across residential, commercial and E-Rate funded educational sectors reduce market risk
- Enhanced operational efficiencies through shared infrastructure and technical resources
Market Opportunity & Growth Drivers:
- The addressable market is substantial, with over 50% of US households lacking fiber access
- Education sector opportunities through WANRack's E-Rate program provide stable, government-backed revenue streams
- Small and medium business expansion potential leverages combined network assets
Investment Thesis & Risk Factors:
- Infrastructure funds typically seek stable, long-term returns - fiber networks align well with this strategy
- Regulatory approval process and integration execution are key near-term risks
- Market competition from incumbent telecom providers and potential overbuilding in certain markets require careful network deployment strategy
The transaction demonstrates CBRE IM's commitment to scaling its digital infrastructure portfolio while capitalizing on the growing demand for high-speed fiber connectivity. The merger's success will largely depend on effective integration and execution of the combined growth strategy across multiple market segments.
Gateway Fiber is an FTTP developer and operator started in 2019 that serves residential and commercial customers across
The merger of the two companies results in greater scale, improved operations, and growth opportunities for the new combined organization and its employees. Additionally, the combination of both organizations opens up new opportunities to further expand product offerings for small and medium businesses and fulfill more commercial and wholesale internet needs.
“Today, more than half of US households don't have access to fiber internet, and many school districts lack sufficient bandwidth for their students,” said Chris Surdo, CEO of the new company. “As a unified organization, especially with WANRack’s E-Rate offering, we have an exciting opportunity to expand our mission of serving customers and communities across our footprint.”
A fund owned by CBRE Investment Management is the majority owner of both Gateway Fiber and WANRack.
“As two high-growth fiber companies in our portfolio, bringing WANRack and Gateway Fiber’s complementary capabilities together made strategic sense,” said Noi Spyratos, Managing Director, Private Infrastructure at CBRE IM. “This positions the combined company to benefit from the opportunity to scale, diversify offerings in new markets, and unlock growth. Our team fully supports Chris and the new team’s vision and leadership.”
The transaction is expected to close in the first half of 2025, subject to required regulatory approvals. Throughout the merger process, customers will continue to experience the same excellent level of service they have come to expect from each company.
The new executive team includes key members of both organizations.
From Gateway Fiber:
- Chris Surdo, Chief Executive Officer
- Nathan McIntyre, Chief Information Officer
- John Meyer, Chief Customer Officer
- Jim Rosema, SVP, Customer Operations
- Jason Johns, SVP, Network Deployment
From WANRack:
- Todd Barfield, Chief Legal Officer
- Maria Davis, Chief of Staff
-
Blake
Mayfield , VP, E-Rate Sales - Shweta Bhatia, VP, Human Resources
About Gateway Fiber
Gateway Fiber is on a mission to positively impact communities through a better internet. As data requirements for residences and businesses continue to expand, Gateway is creating a leading, national fiber-to-the-home platform to serve this critical unmet need. Gateway provides faster, more reliable internet with a simple pricing model and industry-leading customer service. For more information, visit gatewayfiber.com.
About WANRack
WANRack, headquartered in the
About KWIKOM Communications
KWIKOM Communications, founded in 2010 in
About CBRE Investment Management
CBRE Investment Management is a leading global real assets investment management firm with
CBRE Investment Management is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBRE), the world’s largest commercial real estate services and investment firm (based on 2023 revenue). The company has more than 130,000 employees (including Turner & Townsend employees) serving clients in more than 100 countries. CBRE Investment Management harnesses CBRE’s data and market insights, investment sourcing and other resources for the benefit of its clients. For more information, please visit cbreim.com.
*Assets under management (AUM) refers to the fair market value of real assets-related investments with respect to which CBRE Investment Management provides, on a global basis, oversight, investment management services and other advice and which generally consist of investments in real assets; equity in funds and joint ventures; securities portfolios; operating companies and real assets-related loans. This AUM is intended principally to reflect the extent of CBRE Investment Management’s presence in the global real assets market, and its calculation of AUM may differ from the calculations of other asset managers and from its calculation of regulatory assets under management for purposes of certain regulatory filings.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250203379706/en/
For more information, press only:
David Workman
PR & Communications Manager
314-265-8974
David.Workman@gatewayfiber.com
Source: Gateway Fiber
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