In a bold move that signals growing interest in digital infrastructure investments, Brookfield Asset Management is set to acquire internet service provider Hotwire Communications in a deal valued at approximately US$7 billion, according to sources familiar with the transaction. The acquisition, expected to close by late 2025, marks one of Brookfield’s largest infrastructure plays this year and highlights the increasing premium being placed on high-speed internet providers in North America.
The Toronto-based alternative asset manager has been strategically expanding its digital infrastructure portfolio over the past three years, with investments now exceeding US$25 billion across data centers, fiber networks, and telecommunications towers. This latest acquisition will give Brookfield control of Hotwire’s extensive fiber network that currently serves over 600,000 residential and commercial customers across Florida, Georgia, and the Carolinas.
“Broadband infrastructure has become as essential as electricity in today’s economy,” said Sam Pollock, CEO of Brookfield’s infrastructure group, in a statement obtained by CO24. “Hotwire’s fiber-to-the-home network represents precisely the kind of future-proof digital asset we want in our portfolio as data consumption continues to accelerate.”
Hotwire, founded in 2000, has built a reputation for delivering gigabit-speed internet services primarily to multi-dwelling properties and planned communities. The company reported EBITDA of approximately US$420 million for fiscal 2024, representing a 17% increase year-over-year, driven by both subscriber growth and increased average revenue per user.
The deal structure includes Brookfield assuming approximately US$1.8 billion in Hotwire’s existing debt, with the remainder to be paid in cash. Brookfield plans to finance the acquisition through its latest infrastructure fund, which closed earlier this year with US$28 billion in commitments.
Industry analysts view the transaction as perfectly timed amid the ongoing digital transformation. “We’re seeing infrastructure investors pivot heavily toward digital assets,” noted Maria Chen, telecommunications analyst at Morgan Stanley. “The Hotwire acquisition gives Brookfield exposure to a high-growth segment with predictable cash flows and natural expansion opportunities.”
Regulatory approval remains the final hurdle, though experts anticipate minimal concerns given the fragmented nature of the U.S. internet service provider market. The Federal Communications Commission and Department of Justice are expected to complete their reviews by Q3 2025.
For Hotwire’s current management team, led by CEO Michael Gottdenker, the acquisition provides access to significant capital for expansion. “Joining forces with Brookfield will accelerate our ability to bring fiber connectivity to underserved markets,” Gottdenker explained in a joint press release. “We’ve identified over 30 metropolitan markets for potential entry over the next five years.”
The transaction reflects broader industry consolidation as private equity and infrastructure funds compete for digital assets. Just last quarter, similar acquisitions by Blackstone, KKR, and DigitalBridge collectively surpassed US$15 billion in enterprise value.
As remote work patterns become permanent fixtures in the American economy, will Brookfield’s massive bet on residential internet infrastructure prove to be the cornerstone of their next decade of growth? With fiber internet penetration still below 40% across most U.S. markets, the runway for expansion suggests their timing might be perfect.
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