OMERS and EQT Infrastructure complete DG buyout

OMERS Infrastructure and EQT Infrastructure closed their acquisition of Deutsche Glasfaser, a German provider of fiber-optic internet access.

OMERS Infrastructure and EQT Infrastructure closed their acquisition of Deutsche Glasfaser, a German provider of fiber-optic internet access. No financial terms were disclosed.

PRESS RELEASE

(LONDON, MAY 19, 2020) — OMERS announced today the closing of its previously-announced investment in Deutsche Glasfaser (DG). DG is the fastest growing provider of gigabit internet connections through fiber-to-the-home (“FTTH”) to more than 700,000 households and 5,000 businesses across Germany, creating a more sustainable and inclusive society by extending access to high speed connectivity. Earlier this year, OMERS and its partner, EQT Infrastructure Fund IV, announced an agreement to invest in DG.

“We are very pleased to reach this milestone. This closing underlines both our ongoing interest in Germany as a high-quality jurisdiction and our continuing interest in telecommunications-related opportunities,” said Ralph Berg, Global Head, OMERS Infrastructure. “While we celebrate today’s success, our world-wide search for further solid investment opportunities maintains a steady pace,” he added.

“As with our investment in SFR FTTH to roll-out fiber in France, our support for Deutsche Glasfaser is a testament to OMERS Infrastructure’s strong conviction regarding the size of the opportunity represented by telecom. Our thesis continues to be that investing in the development of telecommunication infrastructure will generate, as the roll-out approaches completion, strong and stable cash flows that are a good match with our long-term obligations towards our OMERS members,” said Philippe Busslinger, Head of Europe, OMERS Infrastructure.

In alignment with previously-announced plans, DG will be combined with EQT Infrastructure Fund IV portfolio company inexio, to form a leading FTTH player in rural Germany, as well as one of the leading telco companies in Germany.

Today’s news marks OMERS third infrastructure investment in Germany, following its 2015 investment in Tank & Rast, the country’s leading provider of motorway services, and its 2019 investment in VTG, the largest railcar leasing and rail logistics company in Europe.