GlobalConnect is the leading alternative fiber-based data communication and data center services provider to enterprises and consumers in Northern Europe. In total, the company operates approximately 74,500 km of fiber and 27,000 sqm of data center space that provides for a full range offering of communication infrastructure services including bandwidth connectivity, colocation and cloud infrastructure.
GlobalConnect was created through the merger of the Danish-Norwegian company GlobalConnect and the Swedish company IP-Only in December 2019. The group operates across B2B and B2C business segments: Through its B2B segment, operated under the brand of GlobalConnect, the business provides network-centric mission-critical communication infrastructure across Sweden, Norway, Denmark, Finland and Northern Germany for enterprise customers, and through its B2C segment, operated under the brands of IP-Only in Sweden and Homenet in Norway, the business provides the installation and provision of fiber network and services to urban and rural single and multi-dwelling units in Sweden and Norway. The goal of the group is to become the leading digital infrastructure provider to businesses, public institutions and consumers with comprehensive national and cross-border fiber networks and a unique position in Northern Europe.
GlobalConnect is well-positioned to serve the growing demand of national and international customers. The scale of the combined organization will allow strengthened innovation and investment to bring new technologies and solutions faster to the market.
In 2019, GlobalConnect had revenues of approximately EUR 560 million and employed more than 1,600 people across the Nordics and Northern Germany. The company connects more than 255,000 homes and serves approximately 28,000 enterprises.
Market trends and drivers
The B2B market is characterized by the digitalization megatrend, connectivity needs and increasing IT outsourcing and cloud application adoption that drives data volume growth in fixed fiber networks, mobile backhaul as well as data center usage. As a result, the growing demand for secure high-performance connectivity and data storage solutions, leads to opportunities for fiber network providers and suppliers of cloud enabling infrastructure. Additionally, growing mobile usage and increasing IP traffic demand is driving need for fiber connections to mobile sites.
The demand for fiber connectivity in the B2C market is supported by increasing bandwidth needs of consumers, especially, due to the proliferation of high quality on-demand video, content streaming, etc. and is expected to continue to grow at a high pace supporting continued conversion to fiber technology.
The investment thesis is founded on solid infrastructure characteristics, based on the provision of a mission critical infrastructure to businesses and consumers and benefiting from a high share of recurring revenue in a non-cyclical underlying market. Further, GlobalConnect & IP-Only owns a unique and well-invested fiber network, and serves a market experiencing strong tailwind.
Value creation levers include further commercialization of the existing fiber network and the acceleration of fiber build-out to capture large portions of the underlying market growth both in B2B and B2C in Northern Europe. In addition, there is value creation potential in offering enhanced end-to-end connectivity solutions to strengthen the customer proposition, focusing on operational excellence and pursuing strategic add-on acquisitions.
The icons illustrate the portfolio companies' positive societal contributions based on their solutions i.e. how their products and/or services solve key challenges expressed as the Sustainable Development Goals (SDGs)
- 2017 - In February 2017, EQT Infrastructure III closed the acquisition of GlobalConnect, the leading alternative provider of fiber-based B2B data communication and data center services in Denmark
- 2018 - In May 2018, EQT Infrastructure III closed the acquisition of Broadnet, the front-running independent fiber-based datacom provider in the Norwegian B2B market, from EQT V and VI
- 2018 - In June 2018, GlobalConnect closed the add-on acquisition Nianet in Denmark. In parallel, Broadnet completed the add-on acquisition Kvantel in Norway
- 2018 - Broadnet and GlobalConnect were combined in October 2018, which created the leading Northern European fiber-based datacom provider and supplier of cloud enabling infrastructure. Per Morten Torvildsen was appointed Chairman of the Board
- 2019 - The new governance structure and new management of the combined company, led by CEO Martin Lippert, was effective from January 2019
- 2019 - In June 2019, the new company brand, identity and name, GlobalConnect, was announced
- 2019 - In June 2019, GlobalConnect closed the add-on acquisition Netteam, a Danish provider of network LAN and data center, cloud and security solutions
- 2019 - In June 2019, EQT Infrastructure IV closed the acquisition of IP-Only, the leading alternative provider of fiber-based data communication services in Sweden, from the EQT Mid Market and EQT Mid Market Europe Funds
- 2019 - In November 2019, EQT Infrastructure III and Infrastructure IV announced the intention to combine portfolio companies GlobalConnect and IP-Only. The combination created a leading digital infrastructure provider to businesses, public institutions and consumers with comprehensive national and cross-border fiber networks and a unique position in Northern Europe. Ther merger on operating level happened in Q1 2020