Houlihan Lokey Advises Highway 89

Houlihan Lokey is pleased to announce that Highway 89 has received an investment to fund acquisitions and organic growth from Freedom 3 Capital (F3C). The transaction closed on December 20, 2021.

Highway 89, a premier in-building gigabit internet service provider, has acquired four individual operating companies supported by an investment from Freedom 3 Capital, making the company one of the largest bulk internet service providers in the western United States. Highway 89 has access to over $100 million of capital to support the development of multifamily connectivity solutions.

The acquired entities include Arizona-based companies Broadband Holdings and Digital Home Lifestyles, along with Utah-based companies Mereo Networks and Vicidiem. The combined company, operating under the Mereo Networks brand, covers 18 states across the United States, providing a wholesale bulk, single-source solution for premium fiber-based, broadband internet to key real estate development companies for use in multifamily unit properties. The acquisitions position Highway 89 to provide service to more than 400 properties and 40,000 subscribers across its platform.

Freedom 3 Capital is providing capital in support of the acquisitions and continued expansion of connectivity solutions to high-quality internet in multifamily developments.

Freedom 3 Capital invests in companies at inflection points and helps middle-market companies address strategic growth opportunities by delivering unique capital solutions. The firm’s investment process provides F3C the flexibility to tailor investment structures to the industry dynamics, the company’s specific requirements, and the management team and owners’ long-term business objectives. Beyond the value of F3C’s capital, the firm’s private equity approach to credit investing creates valuable, lasting partnerships with stakeholders and management teams.

Houlihan Lokey served as the financial advisor to Highway 89 and assisted in marketing, structuring, and negotiating the transaction on behalf of the company. This deal further demonstrates Houlihan Lokey’s expertise in the in-building connectivity space and leading position in advising premier fiber-based, broadband companies.