Brookfield to Acquire Hotwire Communications in $7 Billion Deal from Blackstone

Brookfield Infrastructure Partners has reportedly agreed to acquire internet service provider Hotwire Communications in a deal valued at approximately $7 billion, including debt. The acquisition marks a significant expansion for Brookfield in the digital infrastructure space and involves purchasing Hotwire from Blackstone, which currently owns the company through its Infrastructure Partners and Tactical Opportunities arms.

The deal, which has yet to be formally announced, was confirmed by individuals familiar with the matter, who requested anonymity due to the confidential nature of the transaction. Neither Blackstone nor Brookfield have issued public comments regarding the agreement. The Wall Street Journal was the first to break the news, citing sources close to the negotiations.

Hotwire Communications, founded in 2000 by Michael Karp and Kristin Johnson, specializes in providing fiber-optic internet services, particularly catering to multi-dwelling units (MDUs) and commercial properties. The company’s customer base includes residential communities, businesses, and municipalities.

Since acquiring Hotwire in 2021, Blackstone has significantly expanded the company’s reach. Originally operating in just four Southeastern states, Hotwire now provides internet services across nine states, including California, Texas, and Pennsylvania.

This acquisition is part of a broader trend of infrastructure investment firms targeting digital assets, driven by soaring demand for high-speed internet and data connectivity. For Brookfield, one of the world's largest infrastructure investors, the deal bolsters its portfolio in the rapidly growing broadband sector. With rising digital consumption and increasing emphasis on connectivity, Brookfield’s move to acquire Hotwire is seen as a strategic step to capture long-term value in the telecom infrastructure space.