Investors see small cells and distributed antenna systems as areas of opportunity
Private equity firm M/C Partners is combining two DAS and small cell providers into a single company called Neutral Connect Networks. M/C Partners is investing $30 million in the new company, which is acquiring 5 Bars and DAS Communications.
The investors have named Paul McGinn as CEO of the newly formed NCN. McGinn was most recently the director of business development at Vertical Bridge and previously the CEO of CIG Wireless.
5 Bars and DAS Communications both own and operate distributed antenna systems in public venues. These so-called “neutral host” systems can often support more than one wireless carrier.
DAS Communications operates multiple wireless networks at venues in Boston and New York. DAS Communications and NCN were both founded by Tyler Kratz, an attorney and spectrum investor.
5 Bars has two primary business lines: neutral host DAS for stadiums and commercial properties, and small cell systems built for municipalities. 5 Bars is trying to work with municipalities that are overwhelmed by the influx of small cell permitting requests. The company offers to conduct RF benchmark surveys for cities, and to inventory available assets in the right of way, such as light poles, bus stop kiosks and billboards. 5 Bars takes this information, along with small cell form factors that the city has approved, to the wireless carriers. 5 Bars tries to negotiate site lease agreements on the city’s behalf, and presumably shares in the lease revenue as well.
Former 5 Bars CEO John Clarey will continue as an investor in NCN. He said the new financing will enable 5 Bars “to continue to build and operate the large projects it has in its pipeline.”
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