ITS Technology Group, the UK鈥檚 leading business fibre network provider, has secured 拢100m 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, the investment will support ITS鈥� growth target for its full fibre network to pass 50 per cent of the UK鈥檚 commercial business premises.
The 拢100m 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.
Daren Baythorpe, chief executive officer at ITS, said: 鈥淲e鈥檙e really excited to welcome our new investor, Avenue Capital Group.
鈥淭his 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.
鈥淔ollowing last year鈥檚 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.
鈥淚n addition, we鈥檝e had a strong focus on service, investing in systems and delivery to drive improved experience, providing agility and assurance alongside our business growth.鈥�
Jonathan Ford, senior portfolio manager and head of Europe strategy at Avenue Capital, said: 鈥淲e鈥檙e delighted to be supporting ITS鈥� business-to-business fibre rollout in the UK.
鈥淭he company鈥檚 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.
鈥淭his funding fits well with our European strategy of investing in high quality companies with聽sustainable business models.鈥�
Darryl Murphy, head of infrastructure, Aviva Investors, said: 鈥淚t 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.
鈥淲e 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鈥檚 digital evolution.鈥�
Greenhill acted as corporate finance advisors on the transaction with Dow Schofield Watts, Sullivan & Cromwell provided legal advice, RSM were advisors and Analysys Mason provided commercial and technical due diligence.