Private equity firm Kohlberg Kravis & Roberts or KKR bought minority stakes in three companies engaged in rural wireless infrastructure. The businesses were run by Associated Partners. No exact amount was disclosed for the investment but a Wall Street Journal report said KKR committed USD 100 million as an initial investment. The firms are PEG Bandwidth, AP Wireless and AP Towers.
According to news website Gigaom.com KKR usually looks for opportunities in the energy market as far as its infrastructure investments were concerned. This was even if the private equity firm had acquired telecommunications firms before. However, Associated Press Managing Director Scott Bruce said similarities existed between both fields.
Bruce said in a statement, "As the shale revolution is driving the growth of natural gas pipelines to transport molecules, the advent of the smart phone is driving a similar wireless explosion to transmit electrons. Wireless communication networks are an essential component of the nation's infrastructure."
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