ExteNet closes on $128.4 million in financing: SBA's DAS assets included in round

Distributed antenna solution provider ExteNet Systems Inc. has raised $128.4 million in equity funding in a deal that moves SBA Communications Corp.’s DAS assets to Lisle, Ill.-based ExteNet.
The funding round includes the SBA assets, as well as contributions from SSP Offshore L.L.C., an affiliate of Soros Fund Management L.L.C., and all five of the company’s existing institutional investors: Centennial Ventures; Columbia Capital; Sevin Rosen Funds; CenterPoint Ventures and Palomar Ventures.
As part of the deal, SBA’s distributed antenna systems subsidiary, SBA DAS Holdings L.L.C., which operates outdoor solutions primarily in Northeastern cities, were transferred to ExteNet. SBA acquired its DAS assets with the purchase of Lightower in 2008. SBA contributed to the funding round as well and now has an ownership stake in ExteNet, but the companies aren’t breaking out the details of the transaction, said ExteNet Chairman and CEO Ross Manire. The assets include the physical networks as well as employees and existing contracts.
“Since we first entered the DAS business in the fall of 2008, we have been seeking to materially increase our investment and capabilities in DAS,” said Jeffrey Stoops, SBA president and CEO. “Today we have accomplished that with our investment in ExteNet. We have had the pleasure of knowing and admiring Ross Manire and his team for years. … SBA will work closely with ExteNet to provide comprehensive customer solutions, and our goal is to provide increased investment to ExteNet over time as required.”
Distributed antenna systems are gaining traction as an alternative way for service providers to fill in coverage or add more capacity to the wireless network when macro cellsites are not an option, as well as a way for smaller carriers trying to get to market quickly. Outdoor DAS networks generally employ a group of smaller, line-of-sight antennas deployed on existing utility poles, which are at a lower height than traditional cell towers, and are connected through fiber at the pole that connects to a transceiver base station hub. The RF signal is transformed to an optical signal as it runs through the fiber to the hub, where it is again converted to an RF signal.
ExteNet’s iDuct technology is the basis for its indoor solutions, which connect the network using the building’s HVAC systems.
“With more data, more video and more texting, the capacity requirements for the networks will continue to grow exponentially,” Manire said.
The funding will help ExteNet grow its business, including adding employees. “Clearly this puts us in a position to hire more across the business spectrum,” Manire said.