Simpson Thacher is representing EQT Infrastructure III in the sale of its portfolio company Lumos to a joint venture (JV) between T-Mobile and the EQT Infrastructure VI Fund. The JV will bring T-Mobile’s retail, marketing, brand and customer experience strengths together with EQT’s fiber infrastructure investment expertise. Together they will acquire Lumos’ scalable fiber network build capabilities to deliver best-in-class high-speed fiber internet connectivity to customers across the U.S. without access to fiber today.
The transaction is expected to close in late 2024 or early 2025, subject to customary closing conditions and regulatory approvals. At closing, T-Mobile is expected to invest approximately $950 million in the JV to acquire a 50% equity stake and all existing fiber customers, with the funds invested by T-Mobile being used by Lumos for future fiber builds.
Lumos currently provides 100% Fiber Optic Internet, whole-Home Wi-Fi, voice and streaming services, to more than 300,000 homes and businesses across Virginia, North Carolina, and South Carolina. The Firm also represented EQT in the acquisition of Lumos and add-on acquisitions as well as the sale of its commercial services business to Cox Communications.
EQT is a purpose-driven global investment organization with EUR 242 billion in total assets under management (EUR 132 billion in fee-generating assets under management), within two business segments – Private Capital and Real Assets. EQT owns portfolio companies and assets in Europe, Asia-Pacific and the Americas and supports them in achieving sustainable growth, operational excellence and market leadership.
The Simpson Thacher team includes Matt Gabbard, David Lieberman, Fernao Castro, Wang Chen and Celeste Fleetwood (M&A); Eli Isak (Credit); Jonathan Goldstein, Bill Smolinski and Preston Irace (Tax); David Rubinsky, Alan Fenyes and Josh Goldman (ECEB); Sara Razi, Karen Kazmerzak and Max Fischer-Zernin (Antitrust); Mick Tuesley, Mark Skerry and Claire DiMario (CFIUS); Robert Lee and Harris Vandana (Funds); Toby Chun and Deepa Sarkar (Environmental); Dennis Loiacono (Real Estate); and Lori Lesser and Bobbie Burrows (Intellectual Property).