vitronet GmbH (vitronet) is a one-stop shop for all services associated with the roll-out and setting up of broadband networks. This includes planning & documentation, build-out as well as management and maintenance of fibre-optic networks via seven regional offices in Germany. After several add-on acquisitions, vitronet’s service portfolio also comprises own underground construction capabilities and a dark fibre leasing business. vitronet primarily services utility companies and municipalities.

vitronet is expected to continue reporting double-digit growth in the coming years. The main opportunities will arise from the considerable demand for high-performance internet connections – demand which is expected to increase even further in the future. Network expansion is one of the state’s preferred infrastructure projects, and considerable funds have been earmarked to support the roll-out. A further market driver is the upgrading of mobile communications networks (LTE to be followed by 5G), which require new fibre optic networks as well. With several investments behind it, DBAG has accumulated considerable experience in the telecommunications sector. Over the next few years, we will support vitronet’s management team to adapt the company’s internal processes and structures to continue participating in the substantial growth of the market.

Following two add-ons in the first year of our holding period, vitronet was able to close two more add-on acquisitions in 2019. With Sandmann GmbH, vitronet broadened not only its geographical footprint but also its product and service offering to the roll-out and maintenance of powerlines and gas pipes. Heinz Lütkemeier GmbH & Co. KG expands the Group’s value chain with copper installation services and further diversifies its customer base. Both companies significantly increased vitronet’s capacities and hence open up new opportunities, as the company’s growth is being limited by scarce personnel resources in the market.

Given the positive market environment, the consistently strong order intake as well as the increasing contribution of vitronet’s add-on acquisitions, management expects to continue with double-digit growth rates also in 2020. Furthermore, vitronet is consistently examining new companies for acquisitions in order to further expand its capacities and service offering.