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Further accelerates the growth of its 1Gbps full fibre broadband across the UK
Hyperoptic, the UK’s largest gigabit broadband provider, announced today that it has signed a deal for a significant equity raise with Mubadala Investment Company (Mubadala), the investment arm of the Government of Abu Dhabi, with assets under management of USD $225 billion. On closing of the transaction, Mubadala will acquire a minority stake in the Company and Mounir Barakat, Executive Director ICT will be joining Hyperoptic Board of Directors as an observer. This funding follows the Company’s successful £250 million debt raise this summer.
The last two rounds of funding, combined with the large balance sheets of its shareholders, will allow Hyperoptic to accelerate the growth of its 1Gbps full fibre national broadband network. Hyperoptic is committing to deploy up to £500 million over the next three years, bringing forward its target of two million homes passed to 2021 (from 2022 previously). Another three million homes, bringing the total to five million homes, will be passed by 2024 (from 2025 previously).
Hyperoptic is also announcing its “Hyper Cities” rollout with extensive deployment of over 5,000 kilometres metro fibre network using DPA (Duct and Pole access) by 2021 as a key component to the aggressive full fibre deployment plan. The initial cities will include Greater London, Manchester, Glasgow, Edinburgh, Liverpool and Leeds in 2019. A further 10 cities to be covered in 2020 will be announced in the second half of 2019. This metro fibre deployment will allow Hyperoptic to broaden its reach beyond its traditional focus of large residential blocks, to extend service to smaller blocks, housing, and businesses. Hyperoptic already powers nearly half a million homes and businesses with access to its 1Gbps service, giving customers internet speed 21 times faster than the national average.
The Company also announced additions to the senior management team to support its rapid development and growth, including: Charles Davies as MD ISP, Moray Falconer as MD Infrastructure, Boris Dragovic as Chief Strategy & Transformation Officer (CSTO), Pascal Koster as Chief Technology & Information Officer (CTIO) and Daniel Butler as Director Communications and Policy Strategy.
Mounir Barakat, Executive Director of Mubadala ICT, said: “We have been following Hyperoptic for the last couple of years and have been impressed by the impact they have had on the UK fibre market, taking a strong leadership, catalyst and disruptor role. We are excited to be joining the Hyperoptic team, providing substantial capital and balance sheet power as support for their clear vision for the future of the UK telecom market.”
The Company’s Chairman, Boris Ivanovic, added: “Backing by such a significant sovereign wealth fund, not only provides the firepower to deliver on our plan and vision, but is a further proof of the road we have taken in fundamentally transforming a very slow and reactive UK telco market. Together with the new management team, the road ahead is very exciting indeed.”
On behalf of Strategic Capital Investment Partners, LP, which oversees the investment in Hyperoptic by Quantum Strategic Partners Ltd., Waldemar Szlezak, Senior Managing Director, stated: “We are excited to welcome Mubadala to Hyperoptic as a partner and investor. Since making our initial investment in 2013, we’ve been impressed by Hyperoptic’s vision, focus, and tremendous success in deploying gigabit connectivity throughout the UK. This new investment is further recognition of Hyperoptic’s pioneering and leading role in deploying ultra-fast broadband. We look forward to working closely with Dana, Boris, the new leadership team, Mubadala, and all of the Company’s partners to continue to roll out services and reach the Company’s expansion goals.”
LionTree Advisors acted as exclusive financial advisor to Hyperoptic.
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