On Monday, Swedish-headquartered global real assets investor EQT and private equity infrastructure investor Stonepeak announced that they will jointly acquire Dutch telecommunications fiber owner DELTA Fiber. The company, previously a portfolio company of EQT’s third infrastructure fund, will now be 50/50 owned under EQT’s fifth infrastructure fund and Stonepeak
Headquartered in Schiedam, the Netherlands, DELTA Fiber owns and operates approximately 50,000 km fiber-based network infrastructure serving around 900,000 households and businesses across the Netherlands. The company was established in 2018, following a combination of DELTA and CAIW, both of which were acquired by EQT Infrastructure III in February 2017 and January 2018, respectively.
Today, the company provides high-speed broadband, TV and fixed and mobile telephony to Dutch households and businesses, with 20,000 new connections per month putting it on track to hitting one million connections by the end of 2021.
“Two leading international investors joining DELTA Fiber confirms our success in recent years,” said DELTA Fiber CEO Marco Visser in a comment on the investment. “That EQT is choosing to invest in our company again, together with Stonepeak, shows confidence in our ambitious plans for the future. Together they provide us with a solid foundation for further growth.”
In a statement announcing the acquisition, co-investor Stonepeak hailed DELTA Fiber’s “unique asset base and industry-leading management team,” calling it “a compelling investment opportunity that will complement Stonepeak’s existing global portfolio of residential broadband-focused platforms.”
EQT notes that DELTA Fiber benefits from a rapid growth in data consumption and an increased demand for fast and stable internet. The Company’s new network rollout will be based on the latest fiber technology (XGS-PON) enabling download speeds of up to 10 Gbps. This is the prelude to its 25G-PON technology that enables speeds up to 25 Gbps.
According to the investing companies, DELTA Fiber will benefit from EQT’s and Stonepeak’s significant combined expertise in the digital infrastructure sector and vast track record in fiber rollout across the Netherlands and Europe. Both parties are committed to investing significantly in the continued digitalization of the Dutch society by accelerating nationwide B2C and B2B FTTH connectivity in suburban and rural areas. EQT says that DELTA Fiber’s broadband is more sustainable and energy efficient than the legacy networks, with approximately 40-60 percent lower energy consumption.
Together, EQT Infrastructure and Stonepeak will support DELTA Fiber and its management team in its ambition to reach a footprint of two million fiber connections by 2025, thereby covering a quarter of the country. The Company will also be supported by a strong advisory board with seasoned industry experts who possess broad expertise within digital infrastructure and FTTH rollout.
“We are deeply impressed by DELTA Fiber’s management and employees’ strong performance over the past few years,” said EQT Infrastructure Partner Matthias Fackler. “EQT Infrastructure is excited to support their continued journey of digitizing the Netherlands by providing high quality broadband infrastructure to Dutch households and businesses. EQT Infrastructure shares this vision with Stonepeak whose vast experience in the digital infrastructure space makes them an ideal partner to support DELTA Fiber in its next phase of evolution and growth.”
“Stonepeak has long recognized the mission critical nature of broadband in today’s society and we look forward to working with Marco and the team to accelerate the additional rollout of DELTA Fiber’s network across the Netherlands,” said Stonepeak Senior Managing Director Brian McMullen. “We are delighted to partner with a like-minded peer in EQT Infrastructure on this transaction, which will accelerate DELTA Fiber’s ability to connect households throughout the country with reliable broadband.”
The transaction is expected to close in December 2021, subject to customary conditions and approvals. Post-transaction, EQT Infrastructure V is expected to be 60-65 percent invested.
