KKR and Reggeborgh Partner to Bring Fiber to Deutsche Glasfaser

  • Deutsche Glasfaser
  • KKR
  • Reggeborgh
LONDON and RIJSSEN, NETHERLANDS and BORKEN, GERMANY — KKR, a global investment firm, and Reggeborgh (RB), a Dutch investment firm, announced a partnership for the strong expansion of Deutsche Glasfaser (DG). DG plans, constructs, and operates fiber-optic networks in Germany and provides German households and companies with fast broadband connections. KKR will acquire a majority stake in DG, which is currently fully owned by Reggeborgh. In a joint effort, the two partners will provide DG with the long-term capital to embark on an ambitious growth program whereby approximately $682 million 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 a fiber-to-the-home business, DG has already connected about 100,000 German households and companies to its fiber-optic network.

Working to Achieve 100 Percent Broadband Coverage at 50 Mbps by 2018
Data traffic and Internet usage are constantly increasing, favoring high bandwidth provisions such as fiber 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 Mbps by 2018.

“Deutsche Glasfaser is a blueprint for the type of investments our infrastructure fund is targeting in Europe: building a partnership with a best-in-class company, and investing significant amounts of capital to grow a business with strong infrastructure characteristics," said Jesús Olmos, head of European Infrastructure at KKR. "We are very excited about this new addition to our European portfolio as it opens up opportunities in a new and promising sector — telecom infra — alongside our existing investments in renewables, water, district heating, parking and rolling stock.”

KKR has a more than 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.

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