ITS secures £100 million in financing to accelerate UK growth strategy
- £100 million in debt financing committed by Avenue Capital Group
- Investment further finances ITS’ growth ambitions to reach 50% of UK commercial business premises
- Supports company’s organic growth and strategic M&A
ITS, the UK’s leading business fibre network provider, has secured £100 million of debt financing from global investment firm Avenue Capital Group.
Together with the significant existing facility provided by Aviva Investors, the global asset management business of Aviva PLC, this investment further underpins the delivery of ITS’ growth target for its full fibre network to pass 50% of the UK’s commercial business premises. The £100 million of funding will also be available alongside the existing facility to finance strategic M&A activity.
Following strong growth over the past five years, ITS has established itself as a national full fibre infrastructure operator, building a robust, reliable network with industry leading technology, bringing a gigabit-capable full fibre network to UK businesses. With a dedicated channel focus on B2B fibre, ITS now has the largest business fibre footprint outside of the incumbents.
ITS’ infrastructure supports symmetrical services up to 10Gbps using XGS-PON technology, providing open access to a network of more than 500 partners in the UK, and supporting some of the UK’s most progressive business and public sector bodies.
Daren Baythorpe, Chief Executive Officer at ITS, said: “We’re really excited to welcome our new investor, Avenue Capital Group. This additional funding recognises the strength in our business plan as we continue to expand our network, as well as consider strategic acquisitions, as the fibre market adapts to changing technology and undergoes consolidation.
“Following last year’s follow-on investment from Aviva Investors and the acquisition of NextGenAccess, we have worked with our partners to drive connections with both businesses and with public sector organisations. In addition, we’ve had a strong focus on service, investing in systems and delivery to drive improved experience, providing agility and assurance alongside our business growth.”
Jonathan Ford, Senior Portfolio Manager and Head of Europe Strategy at Avenue Capital, said: “We’re delighted to be supporting ITS’ business-to-business fibre rollout in the UK. The company’s management team not only has very deep industry relationships to execute on their business plan, but it has also coupled it with a strong delivery track record. This funding fits well with our European strategy of investing in high quality companies with sustainable business models.”
Darryl Murphy, Head of Infrastructure, Aviva Investors, said: “It is encouraging to have secured funding into ITS from Avenue Capital which, alongside existing investments made by Aviva Investors, will enable the business to maximise its potential. We have been pleased with the performance of ITS to-date and this latest injection of capital will provide it with the ability to fulfil its future growth plans, as part of a critical sector for delivering the UK’s digital evolution.”
Greenhill acted as corporate finance advisors on the transaction with Dow Schofield Watts, Sullivan & Cromwell LLP provided legal advice, RSM were tax advisors and Analysys Mason provided commercial and technical due diligence .
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