ITS Technology Group, a prominent fibre network provider, recently announced its acquisition of £100 million in debt funding from Avenue Capital Group, a renowned global investment firm. This significant financial boost will enable ITS to fast-track the expansion of its full-fibre network across the UK.
Given that last year, ITS had obtained funding from investor Aviva Investors in two separate funding rounds, the company’s financial growth has remained consistent. The £145 million total sum allowed ITS to grow their 10Gpbs-capable XGS-PON fibre network to an extensive 450,000 UK business premises.
ITS Group CEO, Daren Baythorpe, viewing the growth with optimism, stated, “We’re really excited to welcome our new investor, Avenue Capital Group. This additional funding recognizes 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.”
ITS’s expansion targets remain ambitious, aiming to pass one million premises in the forthcoming years. Their formidable portfolio now includes the operations of more than 80 networks across UK. Baythorpe furthers, “Following last year’s 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 organizations.”
Jonathan Ford, Head of Europe Strategy at Avenue Capital, shared their delight in their investment in ITS, supporting their business-to-business fibre rollout in the UK. “The company’s 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,” adds Ford.
There is also potential for the additional funding to catalyze strategic merger and acquisition activities, particularly as conversations regarding altnet consolidation continue throughout UK.
On a related note, ITS forged a strategic partnership this month with Evolve, which will assist in upgrading their GPON network to 10Gbps capacity. This alliance promises to enable businesses to keep pace with escalating demands for bandwidth-intensive technologies. Alan Stephenson-Brown, CEO of Evolve, stated, “Our partnership with ITS signals a new era of connectivity for the UK, bolstering the country with enhanced productivity, digital confidence, and efficiency.”
