3i Infrastructure PLC 3i Infrastructure plc agrees to acquire DNS:NET (2713U)
April 01 2021 - 1:00AM
UK Regulatory
TIDM3IN
RNS Number : 2713U
3i Infrastructure PLC
01 April 2021
3i Infrastructure plc agrees to acquire DNS:NET
1 April 2021
3i Infrastructure plc ("3i Infrastructure") has agreed to invest
c.EUR182m to acquire a 60% stake in DNS:NET and to provide
additional funding for the future growth of the business. DNS:NET
is a leading independent telecommunications provider in Germany. 3i
Infrastructure is buying its stake from Deutsche Beteiligungs AG
("DBAG"), DBAG ECF, a private equity fund managed by DBAG, and
Founder and CEO Alexander Lucke, with the latter reinvesting
alongside 3i Infrastructure to retain a 40% stake. Completion is
expected to take place in June 2021.
Established in 1998, DNS:NET owns the largest independent
fibre-to-the-cabinet network in the Berlin area, as well as three
data centres. The company differentiates itself through a superior
network, local brand recognition and attractive pricing of high
bandwidth products, which drives high customer satisfaction. In
recent years, DNS:NET has commenced a fibre-to-the-home ("FTTH")
rollout which it now plans to accelerate with 3i Infrastructure's
backing.
Fibre is superior to other broadband access technologies because
it provides reliable low latency, high bandwidth and
distance-independent connectivity for both download and upload.
Demand for FTTH connectivity is forecast to grow rapidly, as
consumers normalise data intensive activities such as cloud-based
remote working, high definition streaming and online gaming, and
increasingly view high speed broadband as an essential service.
Germany lags behind most European countries in its FTTH deployment,
with only 14% coverage today compared to the European average of
33%. The market is projected to grow at 30% p.a. to meet the German
government's objective of every one of its 43 million households
having access to gigabit speed broadband by 2025.
Richard Laing, Chair of 3i Infrastructure, commented: "DNS:NET
is an asset-intensive business delivering an essential service in a
sector with strong underlying demand trends. It is a high growth
asset which will further diversify our portfolio, giving 3i
Infrastructure sizeable exposure to the German infrastructure
market for the first time."
Phil White, Managing Partner and Head of Infrastructure, 3i
Investments plc, Investment Manager of 3i Infrastructure, added:
"For businesses and consumers alike, fibre connectivity is
increasingly a necessity as data and computing power moves to the
cloud. Alexander has built a highly successful business over more
than 20 years and we look forward to partnering with him and his
management team as DNS:NET rolls out its fibre-to-the-home offering
in Berlin and the surrounding area."
Peter Wirtz, co-Managing Director 3i Germany, commented:
"Alexander is an impressive entrepreneur, who has built a highly
regarded business, and we are delighted to be backing him and his
management team. We are also pleased to be expanding into the
German infrastructure market which we think offers attractive
opportunities."
Alexander Lucke, Founder and CEO of DNS:NET , added: "We are
happy to sign our agreement with 3i Infrastructure today. In 3i, we
have found the best partner to accelerate our further FTTH rollout.
We plan a very significant investment in fibre infrastructure to
bring Internet at Gigabit speed to the people, starting in the
Berlin/Brandenburg area and Saxony-Anhalt."
-ENDS-
For further information, contact:
Thomas Fodor Tel: +44 20 7975 3469
Investor enquiries Email: thomas.fodor@3i.com
Kathryn van der Kroft Tel: +44 20 7975 3021
Media enquiries Email: kathryn.vanderkroft@3i.com
Notes to editors:
3i Infrastructure plc
3i Infrastructure plc is a Jersey-incorporated, closed-ended
investment company, an approved UK Investment Trust, listed on the
London Stock Exchange and regulated by the Jersey Financial
Services Commission. It is a long-term investor in infrastructure
businesses and assets. Its market focus is on economic
infrastructure and greenfield projects in developed economies,
principally in Europe, investing in operating businesses and
projects which generate long-term yield and capital growth.
3i Investments plc, a wholly-owned subsidiary of 3i Group plc,
is authorised and regulated in the UK by the Financial Conduct
Authority and is the investment manager of 3i Infrastructure
plc.
DNS:NET
DNS:NET Internet Service GmbH ( DNS:NET ) was founded in 1998
and is one of the full-service network operators in Germany, with
its headquarters in Berlin/Brandenburg and a branch in
Saxony-Anhalt . DNS:NET is the largest alternative broadband
service provider in Brandenburg. Using its own fibre optic rings
and high-security data centers, the service portfolio of DNS:NET
covers the entire spectrum of IP-based services for business
customers as well as telephony, Internet connections and TV
products for consumers. Since 2007, DNS:NET has invested
specifically in fibre infrastructure to bring Gigabit Internet to
white and grey spot regions (areas with slow Internet). DNS:NET
invests specifically in fibre optic expansion in Germany and builds
FTTH networks for cities and rural areas to shape the roll-out of
fibre technology in Germany.
www.dns-net.de
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END
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