KKR has purchased a majority stake in Hyperoptic, the largest residential gigabit broadband provider in the United Kingdom, from funds managed by Newlight Partners and Mubadala Investment Co.
Financial terms were not disclosed, but KKR revealed the investment was made through its $7.4 billion Global Infrastructure Investors Fund III, which closed in September 2018. The fund pursues global infrastructure investment opportunities with an emphasis on investments in OECD countries.
Hyperoptic benefits from a full fiber network covering 43 towns and cities across the United Kingdom, with gigabit broadband services passing almost 400,000 homes and businesses, according to KKR.
Dana Tobak, CEO of Hyperoptic, said the company plans to build its hyperfast network out to 2 million homes by 2021 and 5 million by 2024.
KKR’s investment builds on the firm’s investments in European telecommunications infrastructure. It has formed major joint ventures with Telxius and Altice in Spain and France, respectively, focused on mobile connectivity and towers. KKR also owns Deutsche Glasfaser, a leading German fiber broadband provider.
“The business is strongly positioned to meet the growing demand for full-fibre services in the U.K. through further investment and national roll-out, supporting housing development and renovation,” said Vincent Policard, member, and Cristina Gonzalez, director in European infrastructure at KKR, in a joint statement. “Our investment in Hyperoptic builds on KKR’s strong track record in telecommunications infrastructure in Europe, investing in and deploying next-generation digital connectivity.”