Digital Colony has completed its acquisition of DAS and Wi-Fi provider Boingo Wireless for a total of $854 million.
The transaction also includes the assumption of $199 million of the latter’s net debt obligations.
Under the terms of the merger agreement, Boingo stockholders will receive $14.00 in cash per share of Boingo’s common stock. As a result of the completion of the transaction, Boingo is now a privately-held company, and its common stock no longer trades on the NASDAQ.
“The completion of this transaction marks an exciting new chapter for Boingo to advance our business strategy forward with greater flexibility and resources,” said Mike Finley, CEO of Boingo Wireless. “Digital Colony brings significant operational expertise through its ownership of various digital infrastructure businesses, and together, we are committed to addressing the critical need for wireless connectivity. We believe the best is yet to come as this need continues to drive demand for our neutral host, converged networks.”
“With the adoption of 5G, Wi-Fi 6 and CBRS, demand for converged indoor networks will continue to dramatically increase over the next decade. As a leading indoor digital infrastructure provider serving the connectivity needs of essential properties, Boingo is ideally positioned to build on its market leadership and capitalize on this growth opportunity,” said Marc Ganzi, Colony Capital President and CEO of Colony Capital and CEO of Digital Colony.
Digital Colony also highlighted growth prospects for Boingo’s military infrastructure platform, which provides connectivity to troops around the globe.
The company also pointed out that there is also a significant total addressable market of over 20,000 venues, which remains largely untapped and offers opportunities across its core products.
Boingo provides connectivity at airports, stadiums, military bases, convention centers, and commercial properties.
Boingo Wireless recorded revenues of $237.4 million for the full-year 2020, a decrease compared to $263.8 million in 2019. The firm also posted a net loss of $17.1 million in 2020, compared to a net loss of $10.3 million in 2019.
As of December 31, 2020, Boingo Wireless had a total of 74 DAS venues live, comprised of 41,200 DAS nodes and an additional 11,500 nodes in backlog. It had 73 venues live, comprised of 38,100 nodes, as of the end of 2019.
Digital Colony is a digital infrastructure investment firm with over US$30 billion in assets under management. The firm has its headquarters in Boca Raton, with offices in New York, Los Angeles, London and Singapore.