Reuters has reported that ExteNet Systems, a Chicago-based a distributed network infrastructure company, is on the block and could go for more than $700 million, but company officials deny that a deal is in the works.
The company has been growing steadily through high profile deployments in high-rise office buildings, such as the Willis Tower in Chicago and the Empire State Building; sporting venues, including the University of Michigan football stadium, Brooklyn’s Barclay’s Center and Miami’s Marlins Park; hotels, such as the Omni Severin; and healthcare facilities, such as Banner Health.
ExteNet Systems has been in conversations over the years with investment bankers regarding equity financing as well as liquidity for investors who have been shareholders in ExteNet since August of 2004, according to Ross Manire, CEO, ExteNet.
“Those conversations will be ongoing, but there is absolutely no deal imminent. We remain focused on driving the build out of distributed networks to allow wireless carriers to deliver enhanced mobile coverage and capacity to end users,” he said.
SBA Communications purchased a significant minority stake in ExteNet, and Quantum Strategic Partners, an affiliate of Soros Fund Management, became an investor in 2010. Centennial Ventures, Sevin Rosen Funds, Columbia Capital and Centerpoint Ventures have provided equity capital since 2004 and Palomar Ventures since 2008.
The DAS and small cell industry has consolidated on multiple levels. In August of last year, BlueStream Professional Services, which provides planning, implementation and maintenance services for wireless networks, purchased the assets of Tempest Telecom Solutions’ DAS and Small Cell Division, which itself had grown through the acquisition of Leaf Communications Services in 2011.
Goodman Networks acquired DAS-integrator Cellular Specialities in 2013. Black Box Network Services bought InnerWireless in 2012. H&M NetWorks picked up a DAS design and engineering firm, In-Building Wireless, in 2011. Crown Castle purchased NextG Networks in 2011 (for a billion dollars) and NewPath Networks in 2010.