Background

  • Founded in 2019 and headquartered in Hamburg, Deutsche GigaNetz GmbH (DGN) operates in the predominantly self-financed and quality-oriented fibre to the home (FTTH) network expansion throughout Germany. DGN is owned by InfraRed Capital Partners (IRCP) and the founding management team
  • DGN foresees to exceed the initial EUR 3BN investment program, with the ambition to connect more than two million households with FTTH over the next few years
  • DWS Group (DWS) is one of the world's leading asset managers with EUR 902BN of assets under management (as of 31 March 2022) that offers a wide range of traditional and alternative investment solutions, across all asset classes

Process

  • DC Advisory (DC) was mandated by DWS to provide M&A and debt advice on its investment in DGN
  • DC leveraged its extensive experience and deep sector knowledge in the German fibre market to support DWS throughout the process, by advising across detailed work streams including:
    • Process strategy and tactics
    • Business plan development and analysis
    • Financial modelling and valuation
    • Coordination of due diligence advisors
    • Drafting of detailed Investment Committee materials and advice on transaction documentation
    • Review of financing structures, terms, and documentation in relation to financing process run by DGN

Outcome

  • In July 2022, DWS announced it has entered into a binding agreement with IRCP and the founding management team to acquire a significant stake in DGN, subject to pending regulatory approval
  • DWS’ investment will support DGN’s future growth plans across the German fibre market
  • DWS is convinced that DGN will continue to establish itself as a main challenger in the German FTTH market
  • IRCP and the founding management team will remain fully invested with the management team continuing to successfully drive the fibre roll-out plan
  • The transaction further demonstrates DC’s strong expertise in the infrastructure sector and deal execution capabilities, and strengthens its close ties to key European infrastructure investors

“Deutsche GigaNetz is helping to provide fast, reliable, and cost-effective fibre and high-speed internet connectivity. DWS is excited to work with DGN to invest significantly in Germany’s fibre market.”

Thomas Kalthoefer
Senior Principal Infrastructure Investments, DWS

“We are very pleased to have supported DWS on this landmark transaction and entry into the German fibre sector. This transaction builds upon DC’s substantial credentials in the infrastructure sector.”

Moritz Müller
DC Advisory Germany