Overview

DNS:NET is a leading independent telecommunications provider in Germany. Established in 1998, DNS:NET owns the largest independent fibre-to-the-cabinet network in the Berlin area and is rolling out a fibre-to-the home network in Berlin and the surrounding regions.

The company differentiates itself through a superior network, local brand recognition and attractive pricing of high bandwidth products, which drives high customer satisfaction. 3i Infrastructure’s backing will allow DNS:NET to accelerate its build programme to provide gigabit-ready connectivity to its customers. 

Recent Developments

Following our initial investment, 3i Infrastructure injected £33 million of further equity in DNS:NET to fund the next phase of its fibre network build-out. The Company’s stake in the business increased to 64% as a result, the remainder being owned by Alexander Lucke, founder and CEO of the business.

Since our investment, DNS:NET has performed in line with our expectations. Although the roll-out began slower than anticipated initially, the management team has since accelerated the build programme, signing agreements with two contractors to increase capacity. Customer take up remains high and build costs are in line with our expectations. More broadly, German market fundamentals continue to be favourable, with a 30% growth in fibre-to-the-home connections in the year.

In line with our best practice for newer investments, we have strengthened the board with the appointment of a non-executive Chair, Charles Frankl, who brings a background in sales and technology management functions for larger corporates and of scaling growth businesses.