Q1 2024 Market Update
INDUSTRY UPDATE |Q1 2024 1.Houlihan Lokey Overview32.Key Industry Trends by Sector113.Key News Stories174.Selected Q1 2024 Transactions255.Public Markets Overview306.Appendix37 1.Houlihan Lokey Overview32.Key Industry Trends by Sector113.Key News Stories174.Selected Q1 2024 Transactions255.Public Markets Overview306.Appendix37 Digital Infrastructure Industry Update—Q1 2024 Dear Clients and Friends, Houlihan Lokey is pleased to present its Digital Infrastructure Industry Update for Q1 2024. We haveincluded topical news stories, transaction announcements, public markets valuation data, and industryinsights to help keep you abreast of this dynamic and constantly evolving industry. Houlihan Lokey now has ~40 financial professionals between the U.S. and Europe covering the digitalinfrastructure sector. This update also includes the latest from Houlihan Lokey’s Capital Markets team, one of the largestand most active non-balance-sheet placement agents on Wall Street. The Capital Markets Groupbrings real-time knowledge of and insight into what is achievable in today’s volatile markets based onrecent and in-process financing transactions. We hope you find this quarterly update to be informative and that it serves as a valuable resource toyou. If there is additional content you would find useful for future updates, please do not hesitate tocall or email us with your suggestions. Regards, Max GilbertManaging DirectorMax.Gilbert@HL.com+44 (0) 78 2499 7547 Clayton FunkManaging DirectorCFunk@HL.com+1 816.820.0169 Bill FanningManaging DirectorBFanning@HL.com+1 415.205.7242 Jason HillCo-Head of U.S. Tech, GlobalHead of Digital InfrastructureJDHill@HL.com+1 617.947.7295 Brian PryorManaging DirectorBPryor@HL.com+1 650.996.7295 Jesse NicholsManaging DirectorJesse.Nichols@HL.com+1 720.202.1481 Christian MaherManaging DirectorChristian.Maher@HL.com+44 (0) 79 0024 3308 Chris GodsmarkManaging DirectorChris.Godsmark@HL.com+44 (0) 79 7040 6784 Ed WirgmanManaging DirectorEd.Wirgman@HL.com+44 (0) 79 1900 4811 Greg WidroeManaging DirectorGWidroe@HL.com+1 916.425.9659 Charlie HartwickVice PresidentFinancial SponsorsCHartwick@HL.com+1 310.788.5394 Sean FitzgeraldManaging DirectorCapital MarketsSFitzgerald@HL.com+1 917.837.0069 Mario MannaManaging DirectorCapital MarketsMario.Manna@HL.com+1 203.253.5685 Gregg NewmanManaging DirectorCapital MarketsGNewman@HL.com+1 646.221.8141 Industry Subsectors Covered Accomplishments—Q1 2024 in Review Houlihan Lokey continued its position as a leading investment banking advisor to digitalinfrastructure and connectivity companies, having recently advised Focus Group on its sale to Hg;Colohouse on its acquisition of Hivelocity; Lit Fibre on its sale to CityFibre; Apogee on its sale toBoldyn Networks; INdigital on its sale to Novacap; Surf Internet on its debt raise from DigitalBridge,CPPIB, and Boundary Street; DigitalBridge-backed VX Fiber on its merger with Freedom Fibre;Charter Communications on the sale of its tower portfolio to Everest and TowerCo; and SwyftFiberon its equity investment from Macquarie. The Digital Infrastructure team has earned a reputation for providing superior service and achievingoutstanding results in M&A advisory, capital raising, restructuring, and financial and valuationadvisory. A trusted advisor, the group combines extensive market capabilities with in-depth industryknowledge to help clients maximize shareholder value. The Digital Infrastructure team is part of Houlihan Lokey’s global Technology Group, with more than160 finance professionals dedicated to delivering superior results and outstanding service in thetechnology sector. Case Study: Focus GroupDigital Infrastructure Client Profile Founded in Brighton and Hove, U.K., in 2003, FocusGroup is one of the U.K.’s leading providers of essentialbusiness technology to SMEs. The company offers a single point of contact for itscustomers’ business IT needs, providing communicationsand software solutions, connectivity, and value-added ITservices. has agreed on a new investmentfrom Our Role Houlihan Lokey served as the exclusive financial advisorto Focus Group, marketing and negotiating the transactionon its behalf, and also ran a lender education process withglobal debt providers. SellsideAdvisor Houlihan Lokey drove a thorough business preparation exercise, which, alongside heavy buyerpre-qualification, enabled an efficient execution process with a limited number of highlymotivated, top-tier global private equity funds. This was the second time Houlihan Lokey hadworked with Focus Group, having previously advised the co-founders on their 2020 minorityprivate equity transaction with Bowmark Capital. Transaction Snapshot Focus Group, a portfolio company of Bowmark Capital, has received a significant investment fromHg, a leading investor in European and transatlantic software and services businesses. Hg’s investment will support Focus Group’s organic growth plan, M&A ambitions, and pro
