One of the leading global investment firms, KKR, and Dutch investment firm Reggeborgh (“RB”) have expressed their intention to have a partnership with Deutsche Glasfaser for the strong expansion. Deutsche Glasfaser plans, constructs, and operates fiber optic networks in Germany and provides German households and businesses with high speed broadband connections. KKR will acquire a majority stake in Deutsche Glasfaser.
Deutsche Glasfaser is currently owned100 percent by Reggeborgh. In a combined effort, the KKR and Reggeborgh will provide Deutsche Glasfaser with the long term capital to embark on an ambitious growth program whereby approximately €450m is to be invested in the further roll out of the German fiber optics infrastructure over the next few years.
Deutsche Glasfaser focuses on the rural and suburban parts of Germany and is active across the entire value chain, from passive to active infrastructure up to acting as an internet service provider. As fiber to the home (“FTTH”) business, DG has already connected about 100,000 German households and companies to its fiber optic network, which is the fastest broadband access technology in the world.
Data traffic and internet usage are constantly increasing, favoring high bandwidth provisions such as fiber optic technology. At the same time, broadband penetration in Germany is still significantly below the European average. With its planned investments, DG will help to connect more people with its high-speed fiber optic network and thereby also support the German government in its ambition to achieve 100 percent broadband coverage with at least 50 megabits per second by 2018.
The partnership also aims to prepare Deutsche Glasfaser to be ready for its next stage of development, which necessary to contribute to the ambitious Digital Agenda of the German government.
KKR has a more than a 20-year track record of investing in technology and telecommunications. In Germany, KKR built-up Versatel, the leading German fiber-based fixed line telecom provider which owns the second-largest fiber infrastructure in Germany after Deutsche Telekom.
Since 1999, KKR deployed more than $4.7 billion of equity in 15 German companies, working both with trusted German partners such as Siemens, Bosch, Daimler, Linde, and Bertelsmann, as well as with innovative entrepreneurs of leading companies such as WILD Flavors and Arago. Currently, 28 of KKR’s global portfolio companies have operations in Germany and employ more than 20,000 people in the country. The investment is funded by KKR’s Infrastructure Fund II. The transaction is subject to customary closing conditions, including relevant antitrust clearance.
KKR is a leading global investment firm that manages investments across multiple asset classes including private equity, energy, infrastructure, real estate, credit and hedge funds. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation at the asset level. KKR invests its own capital alongside its partners’ capital and brings opportunities to others through its capital markets business. References to KKR’s investments may include the activities of its sponsored funds. For additional information about KKR & Co. L.P.
Reggeborgh is a Dutch private investment company and long-established family business. Reggeborgh formed in 1990 and quickly gained a reputation as experts in the construction and infrastructure markets. Since then, Reggeborgh developed into an independent investor focusing on strategic, long-term market opportunities. Reggeborgh has a strong, diverse portfolio with a proven track record.
Deutsche Glasfaser’s goal is to become the market leader in the FTTH market in Germany. Deutsche Glasfaser’s strategy and vision are based on the offering of services across the entire FTTH value chain ranging from marketing its services directly to end-users via its own ISPs, providing white label services to other service providers, and providing dark fiber services to interested carriers / ISPs. Founded in 2012, Deutsche Glasfaser has its origin in the Reggeborgh Group, a Dutch investment firm which until recently also owned Reggefiber, one of the most important network supplier companies in the Netherlands.