Lightstorm announced that it has signed asset purchase agreements with court-appointed receivers in both Delaware and Singapore to acquire three submarine cables, including the JGA-North as well as significant portions of the JGA-South and SEA-US cable systems.

The transaction will be subject to the regulatory approval process and target to close in the second half of this year. The receivers in Delaware and Singapore will continue managing the companies during the transition period until all necessary regulatory approvals are obtained, and have appointed David Zimmer, the lead of Lightstorm international subsea connectivity business, as interim-CEO to assist with the day-to-day operations during this transition phase.

The acquired three cables have total length of ~21,000 km and ~64 Tbps allocated capacity, connecting key markets including the US, Guam, Japan and Australia. Following the acquisition, Lightstorm will enhance its submarine capabilities further complimenting its existing terrestrial DCI business in Asia.

The JGA-North, a 2,700km submarine cable between the Minami-Boso in Japan and Piti in Guam, is a private cable owned by RTI Group (known as RTI Cables), through its various subsidiaries. The JGA-North consists of two fiber pairs, with an initial design capacity of 24 Tbps (2*120*100Gpbs).

The JGA-South is a 7,000km submarine cable connectsing Sydney and Piti in Guam with a branch to Sunshine Coast of Queensland, with an initial design capacity of 36 Tbps (2*180*100Gbps) on 2 fiber pairs. RTI Group owns one and a quarter fiber pairs (62.5%) on JGA-South, and soly owns the branch to Sunshine Coast.

The SEA-US is a 15,000 km submarine cable linking Indonesia, the Philippines, Guam, Hawaii and Los Angeles, jointly built by RTI Group and its partners, with two fiber pairs and an initial total capacity of 20Tbps. RTI Group owns approximately 40% on the segments between Guam, Hawaii and Los Angeles.  

RTI Group has been in troubles since 2021, due to the disputes, divisions and lawsuit cases between its core business partners.

I Squared Capital portfolio companies already operate a formidable global network. In 2020, I Squared Capital acquired GTT's infrastructure assets, including three transatlantic subsea cables, GTT Express, GTT Atlantic North and South cables, and other data centers and network assets. I Squared Capital has restructured GTT's infrastructure assets into a newly established independent operating company EXA Infrastructure.

Incorporated in Delhi in November 2018, Lightstorm (Lightstorm Telecom Ventures Private Limited) is an independent, carrier-neutral telecom infrastructure platform focused on delivering India’s first cloud connectivity infrastructure. In 2019, New York-based I Squared Capital invested $300 million in Lightstorm Telecom Ventures to own 100% stakes of the company. In 2020, Lightstorm launched SmartNet brand to be a carrier-neutral, low latency and DCI-focused fiber network in India. With the success in India, Lightstorm further expanded into Indonesia in 2022.

The acquistion of three submarine cables in the APAC region will position Lightstorm Group for unprecedented future growth.

Neither of I Squared Capital, Lightstorm and RTI Cables released the consideration for the acquistion transaction.