ITS Technology Group, a leading provider of business fibre network in the UK, has secured £100m of debt financing from global investment firm Avenue Capital Group. This investment, alongside a significant existing facility provided by Aviva Investors, will support ITS’ growth target of passing 50 per cent of the UK’s commercial business premises with its full fibre network. Moreover, the funding will be available to finance M&A activity.
ITS has developed a robust, reliable full fibre infrastructure network, which it has successfully operated as a national provider for the past five years. The business plan’s strength has impressed the new investor, Avenue Capital Group. Looking forward, the fibre market is expected to adapt to changing technology, and ITS is ready to undergo consolidation. To ensure the successful completion of these goals, Daren Baythorpe, CEO of ITS, has emphasized the importance of working collaboratively with partners from various sectors, such as businesses and public sector organisations. Furthermore, the company has invested in providing improved systems and delivery, as well as putting a strong focus on service to maintain business growth.
Jonathan Ford, Senior Portfolio Manager and Head of Europe Strategy, has expressed his delight in supporting ITS’ business-to-business fibre rollout in the UK, citing the company’s deep industry relationships and strong delivery track record as reasons behind this decision. He has also highlighted the fact that Avenue Capital’s funding aligns well with their European strategy of investing in high-quality companies with sustainable business models.
The investment will reinforce ITS’ position as an essential player in the sector, as it will enable the company to maximise its potential in delivering the UK’s digital evolution. The latest injection of capital will support ITS’ future growth plans, thanks to the excellent performance of the company to date. This funding will be utilised in critical sectors such as M&A, which is essential for transforming the fibre market.
Lastly, Greenhill acted as corporate finance advisors on the transaction, with Dow Schofield Watts, Sullivan & Cromwell providing legal advice, RSM as advisors and Analysys Mason overseeing commercial and technical due diligence.