Exa Infrastructure has announced plans to acquire Aqua Comms, a leading subsea cable operator. Binding agreements were signed on January 17, with the deal expected to close within 12 months, subject to customary conditions. The financial terms of the acquisition remain undisclosed.
Aqua Comms, previously owned by Digital 9 Infrastructure (D9), is recognized for operating critical submarine cable systems. The acquisition aligns with Exa Infrastructure’s strategic goals of expanding its Transatlantic platform to address growing demands from AI, cloud, and content sectors.
Aqua Comms: A Profile of the Subsea Cable Operator
Key Assets and Operations
Headquartered in Ireland, Aqua Comms manages and operates several prominent submarine cable systems, including:
- America Europe Connect-1 (AEC-1)
- America Europe Connect-2 (AEC-2)
- CeltixConnect-1 (CC-1)
- CeltixConnect-2 (CC-2)
Additionally, Aqua Comms is part of a consortium overseeing the Amitié cable system (AEC-3). The company supplies fiber pairs, spectrum, and wholesale network capacity to global markets, serving content providers, cloud platforms, carriers, and enterprises.
Transition from D9 Ownership
Aqua Comms was acquired by D9 in 2021, but D9’s decision to wind down operations has prompted the sale of its assets. The UK-based infrastructure fund, launched in 2021, had raised £300 million through an IPO to invest in digital infrastructure. However, a strategic review in 2022 led to its closure, with InfraRed Capital Partners managing the asset wind-down.
Strategic Importance of the Acquisition for Exa Infrastructure
Expanding Digital Infrastructure
Exa Infrastructure operates over 150,000 km of digital infrastructure across 37 countries, including 20 cable landing stations. These facilities are pivotal for connecting subsea systems and enhancing global network capabilities.
According to Jim Fagan, CEO of Exa Infrastructure: “The acquisition of Aqua Comms demonstrates Exa Infrastructure’s commitment to build a modern and diverse Transatlantic platform to fully serve AI, cloud, and content demand, now and in the future. The combination will offer our customers more routes, more capacity, and increased diversity, all on a scaled platform.”
Financial and Legal Advisors
To facilitate the acquisition, Exa Infrastructure enlisted:
- Akur Capital and RBC Capital Markets as financial advisors
- Paul, Weiss, Rifkind, Wharton & Garrison as legal advisors
D9’s advisors include:
- Goldman Sachs (financial advisor)
- Shoosmiths (legal advisor)
Context: The Decline of Digital 9 Infrastructure
D9’s four-year journey in digital infrastructure investment was marked by significant acquisitions, including Aqua Comms and Verne Global. However, operational challenges led to the decision to liquidate its assets. In October 2024, the company appointed InfraRed Capital Partners to oversee the wind-down process.
FAQ Section
What does Aqua Comms specialize in?
Aqua Comms specializes in operating submarine cable systems and providing global network capacity, including fiber pairs and spectrum, to content, cloud, carrier, and enterprise markets.
Why is Exa Infrastructure acquiring Aqua Comms?
Exa Infrastructure aims to strengthen its Transatlantic platform, addressing increased demand for AI, cloud, and content services by adding Aqua Comms’ assets to its portfolio.
Who are the advisors involved in this acquisition?
Exa Infrastructure is advised by Akur Capital, RBC Capital Markets, and Paul, Weiss, Rifkind, Wharton & Garrison. D9 is advised by Goldman Sachs and Shoosmiths.
When will the acquisition be completed?
The acquisition is expected to close within 12 months, subject to regulatory and customary closing conditions.
What are Aqua Comms’ major cable systems?
Aqua Comms operates several critical submarine cables, including AEC-1, AEC-2, CC-1, CC-2, and is part of the Amitié cable system consortium.
