Warburg Pincus and Deutsche Telekom Capital Partners (DTCP) have invested capital in Community Fibre for a controlling stake in the London broadband provider, alongside its existing investors Amber Infrastructure and RPMI Railpen.
Community Fibre said it expects up to £400m (€442m) investment to be made by Warburg Pincus funds and DTCP, alongside the existing investors. Details of the transaction were undisclosed.
Community Fibre plans to fibre-enable one million households across the UK capital by 2023, funded by the new shareholders, it said.
Graeme Oxby, CEO of Community Fibre, said: “Having Warburg Pincus and DTCP on board is a tremendous endorsement for our business. In a post COVID-19 world, digital connectivity will be more crucial than ever.
“With further new investment, we can work faster than ever to deliver 100% full-fibre broadband to social housing residents and to local communities and their businesses across London.”
On completion of the deal, which is expected within a few weeks, Olaf Swantee will join Community Fibre as executive chairman.
Swantee was formerly CEO of Swiss telecom provider Sunrise Communications and CEO of British mobile network operator operator EE.
Rene Obermann, co-head of Europe and MD of Warburg Pincus Deutschland, said: “Community Fibre aims to close the digital divide and promote social inclusion.
“Affordable high speed internet for London’s social housing, and free Gigafast connection to community centres and libraries will create limitless opportunities in education, recruitment, and training, with one click of a button.”
Vicente Vento, co-founder and CEO at DTCP, said: “Now, more than ever, we believe in a world where ubiquitous and affordable high speed connectivity helps society thrive.
“We are looking forward to partnering with Community Fibre, together with Warburg Pincus, to support them on their mission to power communities with ultra-fast fibre connectivity across London.”
In April 2018, Community Fibre secured £25m in new financing led by the Amber’s National Digital Infrastructure Fund with follow-on investment by the UK pension fund for railway companies RPMI Railpen.
RPMI Railpen made its initial investment in the broadband provider the year before.
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