FTI Capital Advisors supports CSquared with capital raise and deal

15 November 2023 Consultancy.africa 3 min. read

Pan-African technology company CSquared has raised $25 million in new equity funding, with a chunk of that money put straight to use through an acquisition.

Launched in 2011 as a project within Google, CSquared has the stated ambition to build a metropolitan fibre optic network in Sub-Saharan Africa. The company develops an open-access and carrier-neutral broadband network, meaning it provides a shared infrastructure to local Internet Service Providers (ISPs) and mobile network operators (MNOs).

Since its founding, CSquared has established operations in six markets across the continent, namely Uganda, Ghana, Liberia, Kenya, the Democratic Republic of Congo, and Togo.

FTI Capital Advisors supports CSquared with capital raise and deal

With the aim to accelerate its growth, CSquared has now brought in $25 million in equity funding, in a move that is described as the first tranche of an investment programme designed to finance CSquared’s further expansion and growth across the continent.

Organisations that participated in the equity investment include the International Finance Corporation (IFC), Convergence Partners, and the International Development Association (IDA). The prior two investors had previously already invested in CSquared – they were part of a consortium that came on board in October 2017.

FTI Capital Advisors, the corporate finance and mergers & acquisitions arm of FTI Consulting, supported CSquared through the capital raise process. The engagement was led from the firm’s Dubai office.

Hot on the heels of the capita raise, CSquared also bought out Google, which held a stake in the company since its inception. This deal – terms and conditions have not been disclosed – was also guided by FTI Capital Advisors.

Reactions from stakeholders

Lanre Kolade, Chief Executive Officer at CSquared, said, “CSquared has demonstrated a proven track record in developing and commercialising carrier-neutral, open-access networks across Africa. We remain singularly focused on changing lives through the digitalisation of the region and providing internet for all.”

Fede Membrillera, Global Co-Leader of FTI Capital Advisors, commented, “CSquared’s networks and digital infrastructure across the continent continue to go from strength to strength. We are pleased to have supported them in raising equity to advance their mission of building a digitally connected Africa.”

Andile Ngcaba, Chairman and Founding Partner at Convergence Partners, said, “The benefits of world-class connectivity span all layers of society and have never been more tangible. As investors in CSquared since 2017 we have had a front-row view of the tremendous impact of open-access networks on the development of the African ICT ecosystem. The combination of developmental impact, as well as strong commercial returns makes this an attractive investment. We are delighted to be able to shape the next phase of this journey.”

Sarvesh Suri, Regional Industry Director for Infrastructure in Africa at IFC, said, “Broadband connectivity is critical for Africa’s development. Our investment in CSquared is aligned with our regional strategy to develop digital infrastructure and promote the digital economy which can help leapfrog development for many African countries, support economic growth and stimulate job creation.”