2025 Fiber M&A Trends: Prepare for Increased Consolidation
The fiber broadband market is gearing up for some big changes in the coming year, according to research conducted by consulting firm AlixPartners. A recent survey conducted in August 2024 uncovered that there are more than 400 small fiber providers that are likely to merge with or be acquired by larger providers and private equity firms. It looks like consolidation is on the horizon for 2025, with even more activity expected in 2026 and 2027.
AlixPartners gathered insights from 60 fiber executives, private equity firms, and investors for this survey. An impressive 93 percent of respondents believe that consolidation is either already happening or will be happening soon, with 70 percent anticipating an increase in activity over the next year. In the grand scheme of things, there are around 1,900 “small-scale” fiber companies in the US. Shockingly, 1,000 of them are either electric cooperatives or part of an energy firm. That leaves us with roughly 900 companies, with AlixPartners estimating that about 400 of them are highly likely to engage in mergers and acquisitions.
Get ready for some changes in the fiber broadband landscape in 2025 and beyond!
