Private equity has found another pile of fiber infrastructure to invest in over in the UK. M&G Prudential's Infracapital has reached an agreement to buy 50% of SSE Enterprise Telecoms for £380m.
SSE Enterprise Telecoms is the network arm of SSE Group, the Scottish-based energy utility, which will continue to own the other half. The network operator has 13,700km route miles of intercity and metro fiber hooking up some 80 markets throughout England, Wales, and Scotland.
SSE Enterprise Telecoms will use the new funding to accelerate its investments in additional infrastructure. As all fiber operators are these days, the company is gearing up to support the bandwidth appetite of 5G and other nextgen technologies.
The terms of the deal say that £215m will be paid on the completion of the transaction with another £165 in performance-based installments to follow.