Information on the Target

CCNST, founded in 2001, began its broadband operations in 2009 under the brand amplus AG, specifically targeting rural regions that lack adequate traditional broadband services. With a robust infrastructure, CCNST has constructed an expansive network consisting of 3,300 kilometers of fiber, which serves approximately 60,000 premises across Bavaria, Germany.

As the first investment by Infracapital in Germany, CCNST will also serve as the inaugural portfolio company of the Infracapital Partners Fund III. This fund focuses on delivering vital infrastructure aimed at addressing the evolving needs of society and fostering sustainable economic growth throughout Europe.

Industry Overview in Germany

Germany is currently experiencing significant challenges in broadband connectivity, particularly in rural areas where traditional infrastructure has failed to keep pace with demand. The level of Fibre to the Building (FTTB) penetration is alarmingly low at just 7%, highlighting a pressing need for enhanced fiber optic deployments.

The lack of adequate fiber infrastructure is particularly pronounced when compared to other European nations, indicating a substantial opportunity for growth in this sector. Government initiatives and regulatory frameworks are increasingly focused on improving digital connectivity across the country, particularly in underserved regions.

Municipalities are beginning to actively seek partnerships with private investors to accelerate broadband expansion efforts, creating a promising environment for companies like CCNST. This collaborative spirit serves as a catalyst for faster implementation and improved service delivery in rural communities.

As awareness of the economic and social benefits of high-speed internet rises, the demand for reliable broadband access will only intensify. This underscores the necessity for strategic investments in infrastructure that can facilitate swift expansion into these underserved markets.

The Rationale Behind the Deal

Infracapital's acquisition of CCNST is strategically aligned with a vision to enhance digital connectivity in underserved regions of Germany. By leveraging CCNST's existing fiber network and local authority support, Infracapital aims to capitalize on a clear market gap in rural Bavaria.

The partnership seeks to address the increasing demand for high-speed internet from both businesses and households, positioning CCNST as a leader in expanding full-fiber connectivity. This deal not only supports CCNST’s current expansion efforts but also ensures a framework for sustainable growth in line with societal needs.

Information About the Investor

Infracapital is a leading infrastructure investment manager in Europe, specializing in essential services that contribute to societal improvements and economic growth. With a focus on sustainable investment, Infracapital has extensive experience in the infrastructure sector and has successfully executed several projects throughout Europe.

The firm’s commitment to fostering community development through strategic partnerships positions it as an ideal investor for CCNST. Infracapital's approach emphasizes collaboration with local governments and stakeholders to create long-term value in the communities they serve.

View of Dealter

This acquisition represents a significant opportunity for both Infracapital and CCNST, as it aligns with the pressing need for enhanced digital connectivity in Germany's rural regions. Given the low fiber penetration, CCNST is poised to capture a substantial market share, especially with Infracapital’s support to further develop its network.

The deal is particularly compelling due to the growing demand for high-speed internet, which is essential for modern businesses and daily life. Infracapital's investment will likely facilitate rapid expansion and improvement in infrastructure quality, addressing a critical gap in service availability.

Furthermore, the alignment of interests between Infracapital and CCNST, along with their commitment to working with municipalities, enhances the likelihood of successful implementation of broadband projects. This strategic partnership is well-positioned to address both immediate and future connectivity needs.

In conclusion, this deal has the potential to be a highly beneficial investment for both parties, supporting long-term infrastructure goals while addressing a clear societal need for better connectivity across Germany's underserved regions.

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