ECI portfolio company, Arkessa, announces today that it has continued its global expansion with the acquisition of Sim Services, a Netherlands-based connectivity services provider. The acquisition will allow Arkessa to strengthen its presence in the Netherlands and will help it reach its goal to ‘future proof’ customers’ connections to the Internet of Things.

Arkessa offers world-wide, world-class cellular connectivity services that make it easy to design, deploy and manage IoT devices securely, efficiently, and at scale, regardless of application or business model. Arkessa provides global coverage, competitive rates, and world-leading technical support, providing a single platform view for customers to order, manage, and connect their smart devices. With offices in the UK, Europe and the US, Arkessa serves multiple vertical sectors, both directly, and through strategic channel partnerships.

Sim Services is an independent provider of IoT connectivity services based out of the Netherlands.  Together with efficient support, short lines of communication and above all fast response times, Sim Services has always differentiated its services by providing the best solutions and support for its clients, with the goal of making IoT connectivity easy.

Andrew Orrock, CEO, Arkessa says: ‘We are delighted to welcome the Sim Services team to the Arkessa Group, and we very much look forward to working together as we continue to fuel our international growth in the IoT market. Rutger and Jeroen lead an expert team that share our values and determination to make IoT connectivity easy to deploy across all sectors, and their team has shown particular strength in delivering the highest level of service and tailored solutions throughout Europe. We welcome their dedication, customer focus, and drive for excellence.’

Rutger Stekelenburg, CEO, Sim Services, says: ‘Our whole team is so excited by this partnership. Arkessa is a natural fit for Sim Services culturally, and in enabling us to offer enhanced capabilities and broader services to our growing customer base. Arkessa offers a global footprint for cellular IoT, and their world-leading LPWAN and eUICC capabilities bring a whole new level of flexibility and coverage to the markets we currently serve, as well as opening up exciting new ones. The team is today as focused as ever on delivering great service to our customers, and we are delighted to join forces with such a dynamic and fast-moving team.

Paul McCreadie, Partner, ECI Partners, says: ‘Arkessa is well positioned to capture the considerable global growth projected in IoT managed services, with billions of connected devices being deployed in the coming decade. ECI is delighted to support Arkessa in making acquisitions which will have a direct positive impact on IoT customers looking for best-in-class connectivity services, anywhere in the world.’

18 June 2020

Investment will accelerate privacy-first customer identity platform with strategic acquisitions 

New York NY, June 18, 2020: Payfone announced it has raised $100 million to acquire strategic assets, further strengthen its machine learning capabilities, and build a cross-industry consortium to secure digital transactions and experiences. The investment was led by funds advised by Apax Digital, the growth equity team of Apax Partners.

Payfone is setting a new standard for digital identity verification and authentication. Its customer identity platform enables the world’s largest financial institutions, healthcare organizations and technology companies to bring speed and security to their onboarding, digital servicing and call center processes.

Payfone’s authentication solutions, including its unique Trust Score™ tool, are built on ten years of proprietary phone intelligence that enable Payfone to anonymously measure a phone number’s reputation and risk with real-time processing of behavioral signals. Payfone’s platform instantly detects burner phones, spoofed calls, real-time SIM swap fraud, and synthetic identities, while removing friction from legitimate transactions. Payfone also provides call verification solutions that run passively in the background of a phone call, allowing faster issue resolution.

Rodger Desai, CEO of Payfone, said, “The mobile phone is rapidly becoming the secure passport for navigating our digital lives. With one in three US consumers already authenticated by Payfone, this investment accelerates our ability to set the standard for the authentication process. As we build out a cross-industry consortium, more enterprises will be able to access Payfone’s real-time fraud and risk signals to prevent account takeovers while passing more transactions.”

Daniel O’Keefe, Managing Partner of Apax Digital said, “Identity is the key enabling technology for the next generation of digital businesses. Payfone’s Trust Score™ is core to the real-time decisioning that enterprises need in order to drive revenue while thwarting fraud and protecting privacy.”

Zach Fuchs, Principal of Apax Digital added, “Payfone’s technology enables frictionless customer experience, while curbing the mounting operating expense caused by manual review.” Concurrent with the investment, Mr. O’Keefe and Mr. Fuchs will join Payfone’s board of directors.

Joining the investment round are new investors Sandbox Insurtech Ventures and Ralph de la Vega, the former Vice Chairman of AT&T. Existing investors MassMutual Ventures, Synchrony, Blue Venture Fund, Wellington Management LLP, and former CEO of LexisNexis Andrew Prozes also participated.

For more information about Payfone’s suite of identity verification and authentication solutions, visit payfone.com.

About Payfone

Payfone is a rapidly growing software and data analytics company based in New York. Payfone’s customer identity platform secures the digital experiences of the banking, insurance, telecommunication, retail, and healthcare industries. Its patented Trust Score™ enables enterprises to pass more digital transactions while thwarting fraud attacks. For the latest updates follow us at https://www.linkedin.com/company/payfone.

About Apax Digital 

The Apax Digital Fund specializes in growth equity and buyout investments in high-growth enterprise software, consumer internet, and technology-enabled services companies worldwide. The Apax Digital team leverages Apax Partners’ deep tech investing expertise, global platform, and specialized operating experts, to enable technology companies and their management teams to accelerate the achievement of their full potential. Over its more than 40-year history, Apax Partners has raised and advised funds with aggregate commitments of over $50 billion. These funds provide long-term equity financing to build and strengthen world-class companies. For more information see: www.apax.com.

Media Contacts:

For Payfone
Emily Riley | +1 914-330-1128 | pr@payfone.com

For Apax Digital
USA Media: Todd Fogarty, Kekst CNC | +1 212-521-4854 | todd.fogarty@kekstcnc.com
UK Media: Matthew Goodman / James Madsen, Greenbrook | +44 20 7952 2000 | apax@greenbrookpr.com

Microsoft announces definitive agreement to acquire Metaswitch Networks, expanding approach to empower operators and partner with network equipment providers to deliver on promise of 5G

• EQT Infrastructure and OMERS acquire Deutsche Glasfaser, the fastest growing provider of gigabit internet connections through fiber-to-the-home (“FTTH”) to more than 600,000 households and 5,000 businesses across Germany, creating a more sustainable and inclusive society
• Deutsche Glasfaser will be combined with EQT Infrastructure IV portfolio company inexio to form a leading FTTH player in rural Germany. EQT Infrastructure will own 51% in the combined group and OMERS will own 49%

• Over the coming years the combined group is committed to invest over EUR 7 billion into the roll-out of fast-speed internet infrastructure in Germany, thereby significantly contributing to the German government’s plan to provide nation-wide gigabit convergent internet infrastructure by 2025

The EQT Infrastructure IV fund (“EQT” or “EQT Infrastructure”) and OMERS Infrastructure Management Inc. (“OMERS Infrastructure”) (acting on behalf of OMERS, one of Canada’s largest defined benefit pension plans) today announced the agreement to jointly acquire Deutsche Glasfaser (the “Company”) from KKR Infrastructure and Reggeborgh.

Since its establishment by Dutch investor Reggeborgh in 2011, Deutsche Glasfaser invested heavily in fiber infrastructure in underserved rural and sub-urban communities in Germany and today provides high-speed internet access to more than 600,000 households and 5,000 businesses. Deutsche Glasfaser’s scalable network, consisting of more than 30,000 kilometers of fiber-optic infrastructure, together with its best-in-class roll-out machine provides a strong platform for continued growth.

Looking ahead, the management team of Deutsche Glasfaser plans to continue the rapid growth of the Company by pursuing a large-scale deployment of FTTH internet access in rural Germany. FTTH is the fastest, most reliable and future-proof internet connectivity solution available and the only technology that will be able to handle the strongly growing internet bandwidth demands of the future.

Deutsche Glasfaser will be combined with EQT Infrastructure IV portfolio company inexio to form a leading FTTH player in rural Germany as well as one of the leading telco companies in Germany. EQT and OMERS Infrastructure as well as Deutsche Glasfaser’s and inexio’s management teams are convinced that the close collaboration between both companies will accelerate the ramp-up of the FTTH roll-out and create various areas for synergy realization.

Germany is among the countries in Europe with the lowest penetration of FTTH connectivity and will require significant investments over the coming years. Drawing on EQT’s and OMERS Infrastructure’s vast sector experience and strong financial support, the combined group intends to invest over EUR 7 billion over the coming years to further accelerate the fiber roll-out pace in the country’s rural regions. This represents a significant contribution to the German government’s plan to provide a nation-wide gigabit convergent internet infrastructure by 2025.

Uwe Nickl, Chief Executive of Deutsche Glasfaser, said: “We are excited to welcome EQT and OMERS as our new owners and we are fully aligned to further develop Germany’s digital infrastructure. With the industry experience and financial support from EQT and OMERS, Deutsche Glasfaser is well-positioned to take the next step on our growth journey and accelerate the fiber roll-out across Germany. On top, we as a management team are excited to join forces with inexio, which will help us to combine our highly complementary skill-sets and to further accelerate our growth.”

David Zimmer, Chief Executive of inexio, said: “The inexio management team is looking forward to the opportunity of building a leading FTTH provider in Germany with the support of EQT and OMERS, alongside our fellow colleagues at Deutsche Glasfaser.”

Matthias Fackler, Partner at EQT Partners, said: “We have followed Deutsche Glasfaser for some time and are impressed with Uwe Nickl’s and his management team’s commitment to digitizing Germany. EQT has a long history of developing strong fiber companies and looks forward to leveraging this experience, and together with OMERS, contribute to the German government’s plan to deliver nationwide gigabit Internet access by 2025. Deutsche Glasfaser and inexio combined will play a vital role in enabling digital inclusion and sustainable economic growth.”

Marco Pugliese, Managing Director at OMERS Infrastructure, said: “We are pleased to announce our partnership with EQT to accelerate the fiber roll-out in Germany’s rural communities. OMERS is eager to support Deutsche Glasfaser’s and inexio’s ambitious growth plans. This investment follows OMERS recent investment to deploy FTTH to more than 8 million homes in France and meets OMERS Infrastructure’s strong desire to seek exposure to essential digital infrastructure in high quality jurisdictions.”

The closing of the transaction is expected in Q2 2020, subject to customary regulatory approval.

With this transaction, EQT Infrastructure IV is expected to be 70-75% invested (including closed and/or signed investments, announced public offers, if applicable, and less any expected syndication).

Contact
Matthias Fackler, Partner at EQT Partners, +49 89 25 54 99 0
EQT Press Office, press@eqtpartners.com, +46 8 506 55 334

About EQT
EQT is a differentiated global investment organization with more than EUR 62 billion in raised capital and around EUR 41 billion in assets under management across 19 active funds. EQT funds have portfolio companies in Europe, Asia and the US with total sales of more than EUR 21 billion and approximately 127,000 employees. EQT works with portfolio companies to achieve sustainable growth, operational excellence and market leadership.

EQT Infrastructure owns multiple leading providers of Gigabit fiber infrastructure across Europe, including inexio (Germany), Delta Fiber (Netherlands), IP-Only (Sweden) and Global Connect (Denmark/Norway).

More info: www.eqtgroup.com
Follow EQT on Twitter and LinkedIn

About OMERS and OMERS Infrastructure
OMERS Infrastructure manages investments globally in infrastructure on behalf of OMERS, the defined benefit pension plan for municipal employees in the Province of Ontario, Canada. Investments are aimed at steady returns to help deliver sustainable, affordable and meaningful pensions to OMERS members.

OMERS diversified portfolio of large-scale infrastructure assets exhibits stability and strong cash flows, in sectors including energy, transportation and government-regulated services. OMERS has employees in Toronto and other major cities across North America, the U.K., Continental Europe, Asia and Australia. OMERS is one of Canada’s largest defined benefit pension funds with net assets of C$97 billion.

More info: www.omersinfrastructure.com

About Deutsche Glasfaser
Deutsche Glasfaser is the fastest-growing provider of fiber optic internet connections for retail and business customers in Germany. In the retail customer segment, growth is driven by rising data volumes and the growing use of video streaming, whilst in the business segment, fiber optic connections for small and medium-sized businesses are the key driver of growth. Just over a decade after its establishment, Deutsche Glasfaser is well positioned in rural and small-town communities in Germany, providing internet access to more than 600,000 households and 5,000 businesses.

More info: www.deutsche-glasfaser.de

About inexio
inexio is a fast-growing provider of broadband connectivity services for retail and business customers in Germany. The Company is well positioned in rural and small-town communities in Southwest and Southern Germany, providing internet access to more than 300,000 households and 6,000 businesses.

More info: www.inexio.net

Under KKR’s ownership, the company has become the German market leader in next-generation digital infrastructure

LONDON–(BUSINESS WIRE)–Feb. 10, 2020– KKR, a leading global investment firm, today announces the signing of an agreement with EQT Infrastructure IV fund (“EQT” or “EQT Infrastructure”) and OMERS, for EQT and OMERS to jointly acquire Deutsche Glasfaser (“DG”).

Deutsche Glasfaser was founded in 2011 and KKR acquired a majority position in 2015 from Dutch investor Reggeborgh. Under KKR’s ownership, Deutsche Glasfaser has become the fastest growing provider of gigabit internet connections through fiber-to-the-home (“FTTH”) in Germany. With KKR’s operational and financial support the company invested over €1.2bn in fibre infrastructure and deployment in underserved rural and suburban communities in Germany, increasing connections to more than 600,000 households and 5,000 businesses.

During that period, KKR has provided consistent support to the DG team including through its dedicated Capital Markets team, which has led several successful rounds of financing for the company to support its growth. The investment demonstrates KKR’s unique expertise in growing and expanding businesses in the infrastructure sector while making an important contribution to increasing broadband penetration, supporting SME growth and helping bring market-leading connectivity to underserved communities in Germany.

Vincent Policard, Partner at KKR in European Infrastructure, said: “A big thank you to Uwe Nickl, Jordi Nieuwenhuis and their management team for an incredible journey over the past years. We are delighted to have contributed to this by supporting the growth of a company which has transformed German connectivity, making huge progress in ensuring that all German households and businesses have access to the digital infrastructure necessary to drive economic growth and help societal development. We wish the company continued success in further developing the German gigabit society.”

Uwe Nickl, CEO of Deutsche Glasfaser, said: “I am very happy to have worked with the team at KKR who have helped us immensely over the past few years with our growth journey as a business. KKR’s industry expertise, deep international network and continued support throughout the process has been invaluable, helping us to scale effectively, establish our market-leading position and bring digital infrastructure to more homes in Germany than ever before.”

The investment in Deutsche Glasfaser was made through KKR’s Infrastructure Fund II. KKR has been active in the infrastructure sector for a decade and currently has around $20bn AUM. The global infrastructure platform has completed over 30 investments in that period, half of those in Europe, across the energy and utility, transportation and telecommunications sectors. The team is currently investing KKR Global Infrastructure Investors III, a $7.4bn vehicle raised in 2018, and has been active in Europe in recent months with transactions including the acquisition of a majority stake in Hyperoptic, a leading UK fibre broadband provider.

The closing of the transaction is expected in Q2 2020, subject to customary regulatory approval. Morgan Stanley acted as financial advisor to KKR and Clifford Chance served as legal counsel on the transaction.

For more information:

About KKR

KKR is a leading global investment firm that manages multiple alternative asset classes, including private equity, energy, infrastructure, real estate and credit, with strategic partners that manage hedge funds. KKR aims to generate attractive investment returns for its fund investors by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation with KKR portfolio companies. KKR invests its own capital alongside the capital it manages for fund investors and provides financing solutions and investment opportunities through its capital markets business. References to KKR’s investments may include the activities of its sponsored funds. For additional information about KKR & Co. Inc. (NYSE:KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.

View source version on businesswire.com: https://www.businesswire.com/news/home/20200210005225/en/

Source: KKR

International
Alastair Elwen
Finsbury
Alastair.elwen@finsbury.com
+44 20 7251 3801

Germany
Raphael Eisenmann
Hering Schuppener
+49 69 92 18 74-86
reisenmann@heringschuppener.com