Brookfield to buy internet provider Hotwire in about US$7 billion deal, sources say

Fibre optic cables are shown in New York in a March 20, 2013 file photo. The Canadian Press/AP/Mark Lennihan

Brookfield Infrastructure Partners has struck a deal to buy internet service provider Hotwire Communications, valuing the company at around US$7 billion, including debt, people familiar with the matter said on Friday.

Hotwire is being acquired from current owner Blackstone, which holds the investment across both its Infrastructure Partners and Tactical Opportunities arms.

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The people spoke on condition of anonymity to discuss confidential information ahead of a formal announcement, which was expected shortly, per one of the sources.

Blackstone and Brookfield both declined comment.

The Wall Street Journal first reported the news, citing people familiar with the matter.

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Co-founded in 2000 by Michael Karp and Kristin Johnson, Hotwire provides fiber network internet service to consumers, with a focus on commercial and community-living customers, according to its website.

Blackstone bought the company in 2021 for an undisclosed amount, and helped grow the business, including expanding its operations from its original four-state footprint in the U.S. Southeast. Hotwire now offers internet in nine states, including Texas, California and Pennsylvania.

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Reporting by Milana Vinn and David French in New York and Harshita Mary Varghese in Bengaluru; Editing by Maju Samuel and Chizu Nomiyama