Infracapital completes acquisition of 50% stake in SSE Enterprise Telecoms

Infracapital will pay £215m to mark the deal’s completion, and up to £165m in a series of instalments, subject to future performance

December 2018 saw Infracapital – the infrastructure equity investment arm of M&G Prudential – enter into an agreement with SSE plc to buy a 50% stake in SSE Enterprise Telecoms for a total consideration of up to £380m. The initial £215m figure will be paid upon the completion, and a further £165m will be paid in a series of instalments, subject to future performance.

SSE Enterprise Telecoms is one of the UK’s leading connectivity suppliers, with a growing 12,000km UK-wide fibre network. Infracapital invests in, builds and manages a range of essential infrastructure to meet the changing needs of society, such as the demand for high-speed internet. Infracapital is an active investor in the telecoms infrastructure sector, having managed businesses throughout the UK and continental Europe, with a focus on delivering fibre networks.

This completion of the acquisition creates 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 partnership supports SSE Enterprise Telecoms’ commitment to innovation and new technologies which are re-defining the market. 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. The investment also provides an opportunity to further enhance the company’s customer service and delivery approach which is already a core differentiator in the market.

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