German FTTH provider Unsere Grüne Glasfaser (UGG) is set to acquire its competitor Infrafibre Germany (IFG) along with its subsidiaries LEONET, Breitbandversorgung Deutschland (BBV), and Infrafibre Networks. The agreement for the transaction has been finalized, according to the companies involved, although financial details remain undisclosed.
UGG, a joint venture between Allianz and Telefónica Group, plans to leverage this acquisition to solidify its market presence and advance its ambitious fiber rollout initiative targeting 2.2 million households, primarily in rural regions. The company assures that all existing fiber deployment projects of UGG, LEONET, and BBV, including those already contracted with municipalities for the coming years, will proceed as scheduled. Additional projects are planned for the future.
The proposed takeover underscores the strong confidence Allianz and Telefónica Group have in the German fiber optic infrastructure rollout and the underlying business model, UGG emphasized in a statement. The transaction requires approval from the relevant authorities, with completion anticipated by the end of 2024. Until then, both companies will operate independently.
UGG and IFG collectively operate across eight federal states in Germany. Their footprint currently covers over one million households, either already connected with fiber or in the process of being connected. The acquisition of IFG by UGG will result in the creation of one of Germany's largest fiber optic infrastructure providers.
“Considering the high demand for digital infrastructures, it's crucial to efficiently pool and deploy resources for fiber optic deployment,” stated Jens Prautzsch, CEO of UGG. “We therefore view the planned acquisition of Infrafibre as a significant and appropriate step toward achieving our goal of providing 2.2 million households in Germany with cutting-edge fiber optics at an accelerated pace. Together, we will make an even greater contribution to meeting the German government's gigabit targets.”
Jürgen Hansjosten, CEO of Infrafibre, added: “Rural regions, in particular, have a pressing need for modern IT infrastructures to facilitate digital participation and economic growth, and fiber optic technology is essentially indispensable. This philosophy makes us an excellent fit for UGG, and we look forward to continuing to fulfill this vital task under the umbrella of UGG, backed by its financially strong and long-term investors.”