Wireless infrastructure firm Connectivity Wireless has reverted to a debt recapitalization process following an auction that ended without securing a buyer, said sources familiar with the situation.

After running an auction of the business with Houlihan Lokey, company executives are now working with shareholder, M/C Partners, on recapitalizing Connectivity’s debt structure.

Executives are currently looking through term sheets of various proposals.

The company had been working with Houlihan Lokey since mid-2022 with the sale process coming to a halt over a year ago, then restarting shortly thereafter.

Middle market private equity firm M/C Partners acquired the company in March 2019 from Salem Investment Partners.

As part of the deal, the investor rolled the business up with Neutral Connect Networks. The consolidated company, through its new-found scale, accelerated its growth in the neutral-host infrastructure and in-building wireless services business, executives said in a press release at the time of announcing the deal.

M/C led a USD 30m funding round for Neutral initially in 2017. Months after the combination Neutral secured a USD 102m credit facility, according to Dealogic data.

The Duluth, Georgia, company designs, engineers, deploys, integrates, operates and manages DAS systems for in-building and outdoor sites of sports and entertainment, commercial real estate, healthcare, transportation and other industries. Connectivity employs the use of DAS and small cell technology.

Wireless firms targeting the in-building sector have faced a challenging couple of years as market players are uncertain how contract renewals will go with enterprise customers, given it’s a fairly new business paradigm. On the other hand, such wireless firms have years of precedent working with carriers.

Infralogic reported last week that wireless firm Airwavz Solutions was seeking a debt raise after its sale process also failed to yield a buyer.

Houlihan Lokey declined to comment. Connectivity and M/C did not respond to requests for comment.