June 29, 2022

Major European investment in high speed fiber optic network provider MS3

A European infrastructure fund has provided significant investments and a strengthened management team to the Hull broadband specialist MS3.

Asterion Industrial Partners, an investment company based in Spain, has purchased the fiber optic supplier.

It specializes in mid-market operations, and the capital injection is accompanied by the expansion of its existing network by the Hessle team, with a capacity of 10 gigabits. It targets more than 500,000 homes and businesses.

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Expertise with regional links was also brought in under the undisclosed deal.

Guy Miller, formerly of TalkTalk joins as CEO; Zarif Imam, formerly of ZTE, joins as CFO and Chris Byrd, formerly of M247, joins as CTO. He is a former University of Hull graduate with other business interests in the city.

Founders Tony Hales and Ben Tarbotton will continue to play an active role in the business.

Mr Hales, who started the Priory Park business in 2013, said: “We are delighted that Asterion saw the same opportunity that we see in the expansion of the MS3 network and we look forward to working with them as well. that we are accelerating our fiber deployment at a sustained rate.

Tony Hales, Managing Director of MS3 Networks, outside Owen House’s headquarters in Priory Park, Hessle.

“I also welcome members of the new management team with whom I have had the pleasure of working throughout this process.

Providing business-to-business services to local businesses and national telecommunications providers, MS3’s existing fiber optic network includes more than 70 km of wholly-owned cladding and underground fiber, which has provided service to businesses for eight years.

Guido Mitrani, Founding Partner of Asterion, based in Madrid, said: “We are delighted to partner with a top-notch management team to take MS3 to the next level and are also delighted to step into the UK fiber on the domestic market by providing diversification to our portfolio.

February saw the expansion of the grid confirmed by MS3, which is also involved in the development of Yorkshire Energy Park in Hedon.

A wholesale-only supplier, MS3 will enable its existing and future Internet service provider customers to provide connections up to 10 Gb to end customers, leveraging their existing fiber optic ring across Hull and to over 30 other locations in the region.

Taking the helm, Miller said, “I am delighted to join MS3, a company with an existing network, existing partnership contracts and excellent relationships with civilian contractors and boards.

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“MS3 is well positioned to become a major regional player in the integral fiber market in the years to come. “

It is the latest regional network provider to receive significant support after Connexin and Quickline both brought new funds to East Yorkshire during the pandemic, following the huge acquisition of KCom in 2019 .

The investment was praised by Hull City Council Chief Daren Hale. He said: “We are delighted to see another significant investment in a Hull-based company, in particular an investment that supports the goals of our economic strategy to position Hull as a leading city in digital technologies. “

MS3 Networks was advised by TradeRisks and DLA Piper, Asterion Industrial Partners was advised by Gibson, Dunn & Crutcher and Alvarez and Marsal.

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