Summary: Infracapital, the infrastructure equity investment arm of M&G, has agreed to acquire Breitbandversorgung Deutschland (“BBV”), a fibre network operator in Southern Germany from RiverRock, an alternative investment firm.
BBV, based in Frankfurt, was established in 2014 and is focused on deploying Fibre to the Building networks in underserved areas within its target regions. It has built a network covering 33,000 premises in the federal states of Thuringia and Baden-Wuertemberg, and under Infracapital’s ownership will continue to build out its significant pipeline.
BBV is Infracapital’s second fibre investment in southern Germany and the sixth investment made by Infracapital Partners III. Fund III’s strategy is to invest sustainably in essential brownfield infrastructure to meet the changing needs of society and support long-term economic growth across Europe.
Infracapital will support the company as it builds on its existing platform and expands into new areas, often in cooperation with municipalities, under the current management team.
Germany is currently one of Europe’s most underserved fibre markets, with average Fibre to the Home penetration of 10%, compared to 36% in the rest of Europe. 1 Infracapital will draw on its existing experience of fibre roll-out in southern Germany and other areas of Europe to deliver this critical infrastructure to homes and businesses across the region.
James Harraway, Managing Director at Infracapital, said:
“We’re delighted to announce this acquisition and see a great opportunity to work alongside BBV’s excellent management team to further expand the business. Infracapital has significant and complimentary experience of investing in the sector in both Europe and Germany specifically, and we are excited to deliver enhanced connectivity for local communities through this partnership, whilst creating long-term value for our investors.”
Manfred Maschek, CEO at BBV, said:
“Demand for high-speed internet has never been more important and we are so pleased to be supported by Infracapital in building out our infrastructure to meet this demand. We see a trusted partner with extensive expertise in them and look forward to working together.”
1 FTTH Council Europe, Markets at September 2019
Infracapital invests in, builds and manages a diverse range of essential infrastructure to meet the changing needs of society and support long-term economic growth. We take an active role in all of our investments, whether nascent or large, to fulfil their potential and ensure they are adaptable and resilient. Our approach creates value for our investors, as we target investments with the scope for stable and sustainable growth. Our portfolio companies work closely with the communities where they are based, to the benefit of all stakeholders. Infracapital is well positioned to deliver the significant investment required to help build the future. The founder-led team of experienced specialists has worked with more than 50 companies around Europe and has raised and managed over
£6.5 billion of client capital across six funds.
Infracapital is part of M&G Plc, a leading European savings and investments business. M&G manages the long-term savings of more than 5 million people and is a major investor in the UK and in the global economy. Total assets under management are £323bn (as at 31 March 2020).
Operating throughout Germany, Breitbandversorgung Deutschland (BBV) provides Fibre to the Building connectivity to private and corporate customers. BBV’s network expansion is focused on underserved, rural regions which suffer from poor existing broadband networks. The core competencies of the company include the planning, marketing and delivery of powerful and pioneering fibre networks, often in partnership with municipalities.
If you require any further information, please contact:
Tom Murray / Nick Laitner, tel. +44 20 7353 4200