Information on the Target

Founded in 2008 by Jason Evert and Justin Sonntag, Accelerated Communications & Construction (Accelerated) is a prominent telecommunications infrastructure solutions provider. The Company specializes in installing and maintaining underground and aerial fiber networks for major Internet Service Providers (ISPs) across the United States. Accelerated plays a key role in facilitating the transition from coaxial cable and copper wiring to advanced fiber-optic networks.

Accelerated offers a range of services that encompass the ongoing repair, maintenance, and enhancement of existing infrastructure, alongside new network builds targeted at ISPs, utilities, and commercial clients. The Company primarily focuses on middle-mile construction, effectively bridging the gap between the network distribution hub and the service area of the carriers.

Industry Overview in the Target’s Specific Country

The telecommunications industry in the United States has been experiencing significant growth, driven by the increased demand for high-speed internet services. The ongoing shift from traditional cable and digital subscriber line (DSL) services to fiber-optic solutions has been a major trend, eliminating the limitations of legacy systems.

In addition, the necessity for enhanced bandwidth to support streaming services, remote work, and online education has further propelled investments in fiber infrastructure. As a consequence, ISPs are increasingly focused on expanding their fiber networks to meet these demands, creating a promising environment for service providers like Accelerated.

The U.S. government has also played a role in nurturing this sector through various initiatives aimed at expanding broadband access in underserved regions. This substantial regulatory support enhances the prospects for telecommunications firms and encourages further investments in technology and infrastructure.

Overall, the U.S. telecommunications landscape is positioned for long-term growth due to the ongoing evolution of technology and consumer behavior, with fiber-optic networks at the center of this transformation.

The Rationale Behind the Deal

The strategic partnership between Hastings Equity Partners and Accelerated is aimed at enhancing Hastings’ telecommunications services platform through the addition of a leading telecommunications infrastructure provider. This acquisition aligns with Hastings' ongoing strategy to build a comprehensive and scalable telecommunications business.

By partnering with Accelerated, Hastings is not only expanding its geographic footprint but also diversifying its service capabilities and customer base, thereby positioning itself to capitalize on the growing demand for fiber-optic solutions and related services.

Information About the Investor

Hastings Equity Partners is recognized as a preferred capital partner dedicated to supporting the founders of lower middle-market businesses. With a focus on leveraging their expertise in building and scaling companies, Hastings has successfully guided its portfolio companies through strategic growth initiatives.

Hastings acquired GridSource in December 2022, and through subsequent investments, including Accelerated and WiseConnect, the firm has established a robust presence in the utility services sector, covering critical aspects of fiber deployment from the middle-mile to the last-mile.

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The investment in Accelerated Communications by Hastings Equity Partners is a strategically sound move that embodies a forward-looking approach in the rapidly evolving telecommunications landscape. The firm’s focus on building an integrated telecommunications services platform signifies its commitment to capitalizing on the increasing demand for fiber infrastructure.

Accelerated’s capabilities align well with current industry trends, particularly the accelerated shift to fiber-optic networks. This positions the partnership favorably to respond to the growing needs of ISPs and commercial clients, enhancing the value proposition of the combined entity.

Additions like Accelerated not only diversify Hastings' portfolio but also bolster its competitive positioning in a market that is ripe for innovation and expansion. Moreover, retaining Accelerated's senior leadership ensures continuity and sustained growth momentum.

Overall, the collaboration is set to foster new growth opportunities while enhancing service offerings across a broader customer spectrum, making it a potentially lucrative investment in the telecommunications sector.

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