EQT, OMERS to buy German FTTH provider Deutsche Glasfaser
The EQT Infrastructure IV fund and OMERS Infrastructure Management Inc. say they have agreed to jointly acquire German fiber broadband provider Deutsche Glasfaser from KKR Infrastructure and Reggeborgh. Financial terms of the deal for the fiber to the home (FTTH) player were not disclosed. The parties expect the acquisition to close in the second quarter of this year, subject to customary regulatory approval processes.
The two new owners plan to combine Deutsche Glasfaser with EQT Infrastructure IV portfolio company inexio. EQT Infrastructure will own 51% of the combined entity and OMERS will own 49% upon the transaction’s conclusion. The two promise to invest more than 7 billion euros to extend the combined company’s FTTH footprint across Germany.
Deutsche Glasfaser was founded by Dutch investor Reggeborgh in 2011; KKR acquired a majority position in the company in 2015 (see "KKR to buy stake in FTTH provider Deutsche Glasfaser"). Thanks to the influx of cash, Deutsche Glasfaser has spent more than 1.2 billion euros to deploy FTTH in underserved rural and suburban communities in Germany. Its footprint encompasses more than 600,000 households and 5,000 businesses thanks to more than 30,000 km of fiber-optic infrastructure.
“We are excited to welcome EQT and OMERS as our new owners and we are fully aligned to further develop Germany’s digital infrastructure,” said Uwe Nickl, chief executive of Deutsche Glasfaser. “With the industry experience and financial support from EQT and OMERS, Deutsche Glasfaser is well-positioned to take the next step on our growth journey and accelerate the fiber roll-out across Germany. On top, we as a management team are excited to join forces with inexio, which will help us to combine our highly complementary skill-sets and to further accelerate our growth.”
“We have followed Deutsche Glasfaser for some time and are impressed with Uwe Nickl’s and his management team’s commitment to digitizing Germany,” commented Matthias Fackler, partner at EQT Partners. “EQT has a long history of developing strong fiber companies and looks forward to leveraging this experience, and together with OMERS, contribute to the German government’s plan to deliver nationwide gigabit Internet access by 2025. Deutsche Glasfaser and inexio combined will play a vital role in enabling digital inclusion and sustainable economic growth.”
Added Marco Pugliese, managing director at OMERS Infrastructure, “We are pleased to announce our partnership with EQT to accelerate the fiber roll-out in Germany’s rural communities. OMERS is eager to support Deutsche Glasfaser’s and inexio’s ambitious growth plans. This investment follows OMERS recent investment to deploy FTTH to more than 8 million homes in France and meets OMERS Infrastructure’s strong desire to seek exposure to essential digital infrastructure in high quality jurisdictions.”
OMERS Infrastructure manages investments in infrastructure on behalf of OMERS, the defined benefit pension plan for municipal employees in the Province of Ontario, Canada.
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Stephen Hardy | Editorial Director and Associate Publisher, Lightwave
Stephen Hardy is editorial director and associate publisher of Lightwave and Broadband Technology Report, part of the Lighting & Technology Group at Endeavor Business Media. Stephen is responsible for establishing and executing editorial strategy across the both brands’ websites, email newsletters, events, and other information products. He has covered the fiber-optics space for more than 20 years, and communications and technology for more than 35 years. During his tenure, Lightwave has received awards from Folio: and the American Society of Business Press Editors (ASBPE) for editorial excellence. Prior to joining Lightwave in 1997, Stephen worked for Telecommunications magazine and the Journal of Electronic Defense.
Stephen has moderated panels at numerous events, including the Optica Executive Forum, ECOC, and SCTE Cable-Tec Expo. He also is program director for the Lightwave Innovation Reviews and the Diamond Technology Reviews.
He has written numerous articles in all aspects of optical communications and fiber-optic networks, including fiber to the home (FTTH), PON, optical components, DWDM, fiber cables, packet optical transport, optical transceivers, lasers, fiber optic testing, and more.
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