Deutsche Infrastruktur und Netzgesellschaft mbH (DING Group), formerly STG Group, was formed in 1989 from a construction company established more than 60 years previously. Since then, Bochum-based DING Group has established itself as a service provider in the telecommunications sector. Its product range not only comprises construction of fibre-to-the-home (“FTTH”) infrastructure, but also the operation, upgrade and subsequent network maintenance. Municipal utilities, municipalities themselves, and network operators are among the group’s clients. Furthermore, DING Group maintains inhouse network infrastructures for real estate companies: proprietary internet and TV products run on these networks, as well as third-party products.

The demand for high-speed internet connections – and thus the need for fibre-optic links – is increasing continuously. However, only 7 per cent of German households are currently connected to fibre-optic networks – the EU average is three times as high. DING Group is in a position to not only benefit from the resulting strong market growth organically, by expanding geographically, but also within the scope of a buy-and-build strategy, helping the company to grow inorganically via acquisitions. In addition, the group can expand its business as an operator of fibre-optic networks for network operators and the housing sector. DBAG will support DING Group in realising its growth potential by providing the necessary capital and its long-standing experience in the expansion of fibre-optic networks.

Following the closing of the investment in November 2019, DING Group was able to acquire three additional companies during the first few months of our holding period. With Leinberger, ISKA and IMD, the group significantly expanded its capacity for underground construction and civil works and hence laid the foundation for its future growth capabilities.

For 2020, management targets to continue its successful growth path on both revenues and earnings level. The future development of the core business is predominantly driven by the construction segment, fuelled by the market’s strong demand overhang. DING Group aims to expand its business with existing and new customers also in other regions in Germany via organical and anorganical growth.