German fibre market shrinks as Unsere Grune Glasfaser acquires Infrafibre

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The German fibre-to-the-home (FTTH) provider says the move will allow it to help the company reach its goal of reaching 2.2 million homes

Fibre network operator Unsere Grune Glasfaser (UGG) is set to acquire rival operator Infrafibre, including the latter’s subsidiaries Leonet and Breitbandversorgung Deutschland (BBV).

The deal will expand UGG’s FTTH footprint by an undisclosed number of homes, contributing to the company’s goal of passing 2.2 million homes with FTTH.

The companies’ combined FTTH footprint will reportedly extend across eight German states, covering over one million homes.

“In view of the high demand for digital infrastructures, it is important to efficiently bundle and deploy capacities for fibre optic deployment,” said Jens Prautzsch, CEO of UGG. “We therefore see the planned acquisition of Infrafibre as an important and appropriate step towards achieving our goal of supplying 2.2 million households in Germany with state-of-the-art fibre optics even faster. Together, we will make an even greater contribution to fulfilling the German government’s gigabit targets.”

Financial details of the deal were not disclosed, with market sources estimating the deal’s value at around €100 million.

Assuming regulatory approval, the deal is expected to be completed by the end of the year.

UGG itself was set up as a joint venture by investors Allianz and Telefónica Group in 2020, with its first customers connected roughly a year later. The partners intend to invest up to €5 billion into UGG, aiming to rapidly grow the company into one of Germany’s largest fibre infrastructure players.

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