Infracapital has reached an agreement with SSE plc to buy a 50 per cent stake in SSE Enterprise Telecoms for a total consideration of up to £380m. The consideration comprises:
•£215m to be paid on completion of the transaction which is expected by the end of June 2019; and
•up to £165m to be paid in a series of instalments, subject to future performance
SSE Enterprise Telecoms owns 12,000km of UK-wide fibre network and will retain the SSE Group as a key funder and anchor customer whilst gaining from Infracapital’s experience and access to additional capital.
The transaction will create a shared ownership structure designed to accelerate SSE Enterprise Telecoms’ plans for growth in the fibre sector, reaffirming its ambition to establish itself as a leading UK telecoms provider.
The business will be in an ideal position to propel its existing projects and partnerships in areas such as 5G, SD-WAN and smart cities.
Colin Sempill, SSE Enterprise Telecoms Managing Director, said: “Infracapital’s investment in SSE Enterprise Telecoms shows the confidence it has in the future growth of the business. It recognises the success we have achieved to date, building out a great network, winning notable contracts and being relentlessly focused on customer satisfaction. Both parties see this as an opportunity to help develop the network infrastructure that this country needs to turn the vision of the UK’s digital economy into reality.”
James Harraway, Infracapital Director, said: “High-speed connectivity is vital to economic growth and prosperity and we are delighted to announce this partnership with SSE plc. SSE Enterprise Telecoms is an established telecoms infrastructure provider and is well positioned to support growth in this critical sector. Infracapital has considerable expertise of investing in digital infrastructure and we look forward to working closely with our new partners as the business continues to grow, deliver new projects and expand its networks.”
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