NetSpeed LLC (“NetSpeed”), a fiber-to-the-premises operator serving residential and business customers in Pennsylvania and Connecticut, announced today that it has formed a new partnership with Oak Hill Capital (“Oak Hill“) which will allow NetSpeed to accelerate the expansion of its fiber network throughout the Northeastern U.S.
“This agreement gives NetSpeed the ability to significantly expand our business in the Northeast with the support of a partner who has a long history of investing in telecommunications companies with great potential,” said Frank Chiaino, Founder and CEO of NetSpeed. “I am proud of what our team has accomplished since we launched the business, but the best is yet to come. Our new partnership represents the next stage of growth for NetSpeed.” Mr. Chiaino and NetSpeed management remain significant investors in the new partnership.
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Oak Hill is an experienced investor in the fiber-to-the-premises space. The firm’s current and recently announced investments include Metronet, a leading fiber-to-the-premises operator based in the Midwestern U.S.; Vexus Fiber, a rapidly expanding fiber-to-the-premises provider in Texas; Race Communications, a fast-growing fiber-to-the-premises business in California; and recently announced, separate agreements to invest in Otelco and in Ontario and Trumansburg Telephone Companies, two eastern U.S. broadband companies.
“NetSpeed has assembled a talented leadership team that is capable of significantly ramping up the company’s deployment of fiber-to-the-premises networks, and we are very excited to contribute our experience and capital to this partnership,” said Benjy Diesbach, Partner at Oak Hill. “Oak Hill and NetSpeed share the belief that expanding access to reliable, high-speed broadband connectivity is fundamental to driving economic growth and equal opportunity in local communities across the country.”
“NetSpeed and Oak Hill have very strong ties to the Northeastern U.S., with both headquarters in New York state, additional presence in Connecticut and Pennsylvania, and a history of building fiber networks throughout the region,” added Jennifer Jun, Principal at Oak Hill. “Having been a long-time resident of the tri-state area, I am excited to support NetSpeed’s mission to provide more customers with high-speed fiber connections and outstanding customer service in previously underserved communities across NetSpeed’s existing footprint and surrounding states.”
Stifel served as exclusive financial advisor and Woods Oviatt Gilman LLP served as legal advisor to NetSpeed in connection with this transaction. Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel to Oak Hill.