US investment fund KKR and Dutch investment firm Reggeborgh (RB) have announced a partnership for a significant expansion of Deutsche Glasfaser (DG). DG plans, constructs and operates fibre-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 programme whereby approximately EUR 450 million is to be invested in the further roll-out of the German fibre optics infrastructure over the next few years. DG focuses on 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 FTTH business, DG has already connected about 100,000 German households and companies to its fibre-optic network.
Broadband penetration in Germany is still significantly below the European average. Through its planned investments, DG will help to connect more people with its high-speed fibre-optic network and thereby support the German government in its ambition to achieve 100 percent broadband coverage at a minimum of 50 Mbps by 2018. KKR has a more than 20-year track record of investing in technology and telecommunications. In Germany, KKR built up Versatel, which owns the second-largest fibre infrastructure in Germany after Deutsche Telekom.
