Infracapital, the infrastructure equity investment arm of M&G, is buying a fibre network operator in southern Germany from RiverRock.

Infracapital, on behalf of the Infracapital Partners III Fund, has agreed to buy Breitbandversorgung Deutschland (BBV) from the alternative investment firm.

Established in 2014, Frankfurt-based BBV is focused on deploying fibre to the building networks in underserved areas within its target regions. It has built a network covering 33,000 premises in the federal states of Thuringa and Baden-Wuertemberg.

Infracapital said it will support the company as it builds on its existing platform and expands into new areas.

BBV is Infracapital’s second fibre investment in southern Germany and the sixth investment made by Infracapital Partners III. Fund III’s strategy is to invest in brownfield infrastructure across Europe.

James Harraway, managing director at Infracapital, said: “Infracapital has significant and complementary experience of investing in the sector in both Europe and Germany specifically, and we are excited to deliver enhanced connectivity for local communities through this partnership, whilst creating long-term value for our investors.”

Manfred Maschek, CEO at BBV, said: “Demand for high-speed internet has never been more important and we are so pleased to be supported by Infracapital in building out our infrastructure to meet this demand.

“We see a trusted partner with extensive expertise in them and look forward to working together.”