For DBAG, inexio has been a prime example of a successful private equity investment, where we support a talented management team, promoting a very promising business model. Back in 2013, when we acquired a minority stake in the previously family-owned business during the course of a capital increase, providing additional profit-partic- ipation capital, broadband communications was still the domain of pioneers – covering a segment with strong growth potential.
We closely supported inexio over a sixyear period – providing additional capital as well as know-how. Especially in such a fast-growing business, the management team keeps facing new challenges: with an experienced partner at their side, they can tackle such situations in a more targeted manner, and with less risks involved.
Between 2013 and 2015, DBAG co-invested with the DBAG ECF fund, acquiring further shares in inexio from co-shareholders. And when financial investor Warburg Pincus supported a management buyout in 2016, DBAG and DBAG ECF did not sell their stakes – instead, they participated in the capital increase conducted upon the entry of the new majority shareholder, thus investing further funds. What convinced us, time and again, was the clear focus and determination of the management team as they worked on developing the business, taking the right strategic decisions at every development stage. Today, founders David Zimmer and Christoph Staudt and their team can boast a flawless track record: they have successfully implemented their business concept both through organic growth as well as through acquisitions.
Launched as a start-up just over a decade ago, nowadays inexio is one of the fastgrowing, leading independent providers of fibre-optic connections in Germany. Together with its private equity investors, the company has established a fibre-optic network in rural and suburban areas across southern Germany, thus significantly contributing to the build-up of local infrastructure there – allowing businesses to stay in their home region, creating local jobs.
In this way, inexio has attracted the interest of large infrastructure investment funds. The sector is about to embark upon a fundamental change: while the company has so far pushed the fiber optic expansion into the villages and the last mile into the households, realised with VDSL technology via the copper cables of Deutsche Telekom, fiber optic connections are now being laid directly into the buildings. However, this expanded infrastructure requires around three times the investment volume. inexio will realise this new development phase in its corporate history together with the EQT Infrastructure IV fund.
TELECOMMUNICATIONS AND IT SERVICES