EQT Infrastructure’s latest global infrastructure fund has agreed a €1.7bn deal to buy an alternative provider of fibre-based data communication services in Sweden.

The Stockholm-headquartered fund manager’s EQT Infrastructure IV is buying IP-Only from the EQT Mid Market and Mid Market Europe funds at an enterprise value of SEK18.25bn (€1.7bn) plus an earn-out of up to SEK1bn.

The transaction is expected to close in the current month.

IP-Only owns and operates 16,000km of fibre network that, together with leased infrastructure, covers 230 of 290 municipalities in Sweden. IP-Only currently provides wholesale fibre access services to more than 200,000 households.

EQT Infrastructure IV, which raised €9bn in March this year, said it is committed to supporting IP-Only in its continued contribution to achieving the Swedish Government’s broadband targets, meaning that 98% of the Swedish population will have broadband access by the end of 2025.

Masoud Homayoun, a partner at EQT partners and investment advisor to EQT Infrastructure IV, said: “EQT Infrastructure has a solid track record from developing strong fibre assets in the Nordics as well as globally, and we are impressed by the growth IP-Only has achieved over the previous years.

“IP-Only has developed into an infrastructure business with an excellent position in the market and it will continue to support  digitisation of households and businesses in the years ahead.”