Government funding, grid modernization, ISP consolidation, and the energy transition are reshaping the market for broadband and utility software companies.
A convergence of government funding, infrastructure modernization, and technology change is reshaping the broadband and utility software sectors. In the United States, the Broadband Equity, Access, and Deployment (BEAD) program provides $42.45 billion for broadband planning, deployment, mapping, equity, and adoption work. At the same time, utilities are investing in smart grid modernization, advanced metering infrastructure, outage management, and billing systems to support grid reliability and the energy transition.
For founders who have built software companies serving internet service providers (ISPs), broadband operators, electric and gas utilities, water systems, or municipal infrastructure organizations, this convergence of capital and demand can create a real M&A opening. Acquirers are looking for technology platforms that help operators deploy, manage, and monetize next-generation networks and grid infrastructure.
This guide examines the current M&A landscape across both broadband and utility software, profiles the key buyers, benchmarks valuations, and provides practical guidance for founders considering a transaction.
The US broadband infrastructure market is undergoing one of its largest expansion cycles in decades. BEAD, part of the Infrastructure Investment and Jobs Act, represents the single largest federal investment in broadband connectivity. AlixPartners' 2024 telecom survey found that 98% of surveyed fiber executives planned to engage with BEAD, underscoring the program's importance to the industry's growth trajectory.
The market structure is fragmented but consolidating. AlixPartners estimated that roughly 400 of the remaining roughly 900 small-scale fiber companies in the US were meaningful M&A candidates, and 93% of surveyed executives thought consolidation was already underway or would accelerate by 2027. Major transactions included Verizon's planned acquisition of Frontier, T-Mobile's fiber expansion through Metronet and Lumos, and BCE's acquisition of Ziply Fiber.
The software layer supporting these operators includes billing and subscriber management, network provisioning and monitoring, customer relationship management, field service management, and operational support systems (OSS/BSS). Companies like Sonar Software, Visp.net, Calix and DZS serve this market.
The software companies that benefit most are not generic tools with infrastructure language layered on top. They tend to look more like vertical SaaS companies: narrow, workflow-specific, and embedded inside the operating cadence of a defined market.
The utility software market encompasses a broader set of technologies:
Key players in utility technology include Itron, Landis+Gyr, Aclara (now part of Hubbell), Sensus (owned by Xylem), and Honeywell.
Smart electricity meter penetration in the US is projected to exceed 94% by 2029, according to Berg Insight, with an installed base growing from 145.9 million in 2023 to 182.9 million by 2029. This ongoing deployment cycle creates demand for both hardware and the software that manages, analyzes, and monetizes the data these meters produce.
The broadband sector experienced a wave of landmark transactions in 2024-25:
Verizon and Frontier: Verizon's planned acquisition of Frontier Communications aims to expand its fiber footprint, combining Verizon's existing FiOS network with Frontier's fiber assets across multiple states.
T-Mobile's expansion: T-Mobile pursued fiber expansion through Metronet and Lumos while completing its integration of Mint Mobile. These deals reflect T-Mobile's strategy to offer converged wireless and fixed broadband services.
AT&T and Lumen fiber assets: AT&T's acquisition of Lumen Technologies' mass-market fiber business represents another major consolidation move, as incumbents seek to expand their fiber footprints to compete with cable and fiber-first challengers.
Consolidated Communications and Searchlight Capital: Consolidated's take-private transaction with Searchlight Capital Partners signaled private equity's confidence in the fiber broadband thesis.
Smaller fiber consolidation: Numerous smaller transactions have occurred, including Shentel's acquisition of Horizon Telecom, Ziply Fiber's acquisition of Ptera, GI Partners' acquisition of Rise Broadband, and Antin Infrastructure's acquisition of Empire Access. These deals reflect the broader trend of PE-backed roll-ups targeting smaller fiber operators.
Itron acquires Elpis Squared: Itron acquired Elpis Squared to expand its grid edge intelligence portfolio. This deal reflects Itron's strategy to move beyond hardware into higher-value software and analytics.
Hubbell acquires Aclara: Hubbell acquired Aclara Technologies for about $1.1 billion, adding advanced metering, grid monitoring, and utility software capabilities, according to Government Technology's coverage.
Honeywell and utility software: Honeywell has continued to expand its utility software capabilities through both organic development and strategic acquisitions, particularly in grid modernization and building automation.
Schneider Electric and AVEVA: While primarily focused on industrial software, Schneider Electric's acquisition of the remaining stake in AVEVA signals the strategic value of operational technology software.
The municipal segment -- water utilities, public power companies, and local government infrastructure -- represents a growing market for software vendors. Municipal software acquisitions have been driven by companies like Tyler Technologies and PE-backed platforms seeking to build vertical software businesses serving local government.
Valuations across broadband and utility software reflect the combination of government-funded growth, essential infrastructure characteristics, and recurring revenue models. But this is not a market where a single clean multiple tells the story. Broadband infrastructure transactions include physical network assets and subscriber bases. Utility technology companies often blend hardware, services, and software revenue. Pure software companies should be benchmarked separately from asset-heavy operators.
Consolidated Communications' take-private transaction provides a useful reference for fiber infrastructure appetite, though it should not be read as a software multiple. Itron and Landis+Gyr provide public-market context for utility technology, but both include significant hardware exposure. For software founders, the more relevant question is how much of revenue is recurring, mission-critical, and difficult to replace.
That question is especially important for companies whose product value comes from operational data. The same logic applies across other infrastructure-heavy software categories, including the market for vertical data platforms.
Key valuation drivers in this sector:
Itron, Landis+Gyr, Honeywell, Schneider Electric, and Siemens are all logical acquirers of utility software companies. These firms seek to enhance their software and analytics capabilities to complement their hardware businesses, transitioning from equipment vendors to integrated technology platform providers.
PE firms have been active buyers in broadband infrastructure and are increasingly interested in the software layer as well. Firms active in the space include Searchlight Capital, GI Partners, Antin Infrastructure, and others. The BEAD program's multi-year funding timeline creates an investment thesis for PE firms that can deploy capital now and benefit from government-funded growth over the next several years.
Verizon, T-Mobile, AT&T, Lumen Technologies, and Bell Canada are all acquiring both infrastructure and technology to expand their broadband capabilities. While these operators primarily acquire networks and subscribers, they also value software platforms that can improve operational efficiency and customer experience.
Oracle, SAP, Salesforce, and Tyler Technologies have all built or acquired utility and municipal software businesses. These companies seek to leverage their existing enterprise relationships and cloud platforms to serve the utility and municipal markets.
Calix has built a significant cloud and software platform specifically for broadband service providers, and its model of providing software-as-a-service to ISPs illustrates the opportunity for vertical software companies in this space. Similar vertical SaaS providers serving utilities or municipal organizations are natural acquisition targets for larger platforms.
Government funding at scale: BEAD remains one of the largest drivers of broadband investment. As funding flows to states and ultimately to broadband operators, demand for software to deploy, manage, and operate new networks should intensify.
Grid modernization imperative: Aging utility infrastructure, growing renewable energy penetration, electric vehicle adoption, and increasing climate-related disruptions are all driving utilities to invest in modern software platforms. This investment cycle is likely to play out over many years.
ISP consolidation: The broadband software market is being reshaped by the needs of larger operators that demand more capable technology platforms.
Energy transition technology needs: The transition to distributed energy resources (solar, battery storage, EVs) requires new software capabilities for grid management, demand response, and customer engagement. Utilities and their technology providers are acquiring these capabilities through M&A.
Cybersecurity requirements: As utility and broadband infrastructure becomes more connected and software-dependent, cybersecurity requirements are intensifying. Companies with strong OT security capabilities are particularly attractive acquisition targets.
Electric vehicle infrastructure: EV adoption is creating demand for utility software that can manage the impact on the grid, including load management, time-of-use pricing, and EV charging network integration. Companies with software solutions for EV-grid integration represent an emerging acquisition category.
Water utility modernization: While less visible than electric grid modernization, the water utility sector is experiencing its own technology shift. Aging infrastructure, water scarcity concerns, and regulatory requirements around water quality and conservation are driving investment in smart water metering, leak detection, and water management software. Companies serving the water utility market benefit from a customer base that is even more fragmented than electric utilities, creating roll-up opportunities.
Data monetization: Broadband operators and utilities generate large volumes of operational and customer data. Software companies that can help these organizations analyze and apply their data assets are attracting attention. This includes platforms for network analytics, customer segmentation, and predictive maintenance that turn raw operational data into business intelligence.
Workforce management technology: Both broadband and utility operators face workforce challenges, including an aging workforce, skilled labor shortages, and the need to manage field operations across geographically dispersed territories. Software that optimizes workforce scheduling, enables remote diagnostics, and supports knowledge transfer is in demand.
If you have built a software company serving broadband operators, utilities, or municipal infrastructure organizations, the current market offers several strategic considerations:
BEAD creates a major tailwind. If your product is relevant to BEAD-funded broadband deployments (provisioning, subscriber management, network monitoring, grant compliance), now is the time to show how directly that funding translates into pipeline. Acquirers will care less about BEAD as a label and more about contracted demand, implementation urgency, and the durability of the software revenue.
Mission-critical positioning is your strongest asset. If your software is embedded in utility operations (outage management, SCADA integration, billing), the switching costs create defensive value. Document and quantify these switching costs for potential acquirers.
Hardware-to-software transitions attract strategic buyers. If you are a software-first company competing in markets traditionally dominated by hardware vendors (metering, grid equipment), your software margins and scalability can matter to acquirers seeking to shift their revenue mix.
Municipal relationships are difficult to replicate. If you have established relationships with municipal utilities, public power companies, or local government infrastructure organizations, these long-cycle, high-retention customer relationships are valuable to acquirers.
Consider the PE roll-up opportunity. Private equity firms are assembling broadband and utility software platforms through roll-up strategies. If you are a smaller company, a PE-backed platform may offer an acquisition structure that includes continued management roles and equity participation in the combined entity.
The broadband and utility software sectors have several clear tailwinds: government funding through BEAD, grid modernization, ISP consolidation, and the energy transition. For software companies serving these markets, the result is an active M&A environment where strategic and financial buyers are looking for durable recurring revenue and credible exposure to infrastructure investment.
The key to maximizing value lies in demonstrating recurring software revenue, BEAD or regulatory relevance, mission-critical operational positioning, and strong customer retention.
The current window, driven by government investment and infrastructure modernization, may not persist indefinitely. BEAD funds will be deployed over a defined timeline, and the most active phase of ISP consolidation will eventually stabilize. Founders who understand the landscape and act strategically during this period of buyer activity will be better positioned to achieve strong outcomes.
The infrastructure sectors you serve are undergoing real transitions: from copper to fiber, from analog to smart grid, from centralized to distributed energy. Software companies that enable those transitions occupy a valuable position. For founders ready to explore their options, the mix of government capital, infrastructure demand, and acquirer appetite creates a market worth taking seriously.
Levera Partners advises technology founders on mergers and acquisitions. If you are exploring a sale or strategic partnership, we would welcome a confidential conversation.
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