FLAG is a leading global data communications service provider and owner of one of the world’s largest private subsea fibre optic networks. The business provides high-bandwidth connectivity to a range of customers including over-the-top content providers, telecom carriers, new media providers and enterprises.

Visit FLAG's website

Overview

FLAG’s 66,000km of cables span from North America to Asia. It is particularly strong on the Europe-Asia and Intra-Asia routes where it is well positioned to capitalise on growth opportunities and serve the exponentially growing demand for data traffic.

Why we invested

3iN was attracted to FLAG because it owns one of the most comprehensive subsea cable networks globally, serving customers in over 180+ countries. The company benefits from the rapidly expanding data market with data usage forecast to grow exponentially. It also operates in a market with high barriers to entry whilst providing an essential service. FLAG has a highly experienced management team who have a strong track record in the sector. 

Recent developments

FLAG performed strongly during the year. Demand for subsea fibre capacity continues to grow, driven by hyperscaler investment, AI workloads and new customer segments, while supply of new subsea fibre capacity remains constrained due to high capital costs, permitting complexity and long development timelines. Customer churn has reduced and sales momentum has strengthened.

Heightened geopolitical tensions have increased the importance of route diversification, further supporting demand for FLAG’s network. The recently acquired India-Asia-Xpress system has outperformed expectations. Earlier in the year, FLAG invested $70 million in a fibre pair on Google’s trans-Pacific ECHO system, where customer demand remains strong despite minor construction delays.

Management has initiated an approximately $70 million investment programme to enhance network resilience, reduce risk in geopolitically sensitive corridors, support growth in underserved regions and expand European connectivity.