Brightspeed, a US-based internet services provider, has announced that Mubadala Investment Company (Mubadala) will invest $500m in the company.
Following the investment, which is subject to regulatory approval, the UAE-based Mubadala will acquire a minority stake in the broadband company.
With the deal, Mubadala joins the likes of Apollo Global Management’s affiliates as Brightspeed’s shareholders.
After launching operations in October 2022, Brightspeed began building out its fibre optics network, which started offering services to its first fibre clients in March this year.
The internet company hopes to reach up to three million homes and businesses in the next five years.
Mubadala CEO of Real Estate and Infrastructure Investments Khaled Abdulla Al Qubaisi said: “As a responsible global investor, Mubadala sees a huge opportunity in supporting Brightspeed’s growth strategy in transitioning large swathes of the US to fibre connectivity and promoting digital equity and inclusion.”
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Entities such as Brightspeed are playing a critical role in offering essential digital solutions as data volumes rise and demand for faster, more reliable connectivity surges due to the expansion of cloud services, video streaming, IoT applications, and 5G technologies.
Brightspeed plans to use the funding to accelerate expansion and serve places that have historically had limited access to fibre internet and advanced technologies.
Brightspeed CEO Bob Mudge said: “The added investment from another well-respected institutional investor is a testament to the value we will create and the connections we will enable for homes and businesses across our 20-state footprint.”