Broadband firm Hyperoptic to create 1500 UK jobs with £250m investment

Broadband provider Hyperoptic has raised £250m in funding and revealed plans to create 1,500 jobs.

The company will use the nine-figure boost, secured from a group of eight international banks, to roll out its full fibre optic network to 50 UK towns and cities by 2019.

According to Hyperoptic, the deal represents the single biggest investment in the UK for a full fibre optic network provider.

It comes at a time when just 3% of the country’s premises can access the gold standard of fibre-to-the-premises (FTTP) broadband, which puts the UK in 32nd place out of 34 OECD (Organisation for Economic Co-operation and Development) countries for connectivity.

Hyperoptic’s 1Gbps service already powers almost half a million homes and businesses. The new investment will help it reach two million homes by 2022 and five million by 2025.

The expansion will also see the firm grow its 600-strong workforce, based over five offices, with a further 1,500 roles.

Hyperoptic was advised on the investment by LionTree Advisors.

The deal drew backing from BNP Paribas, ING, Royal Bank of Scotland, Barclays, Societe General, Royal Bank of Canada, HSH Nordbank and NIBC.

Jean-Philippe Rouane of BNP Paribas and Jeroen Kleinjan from ING said in a joint statement: “We have continually been impressed with the quality, scope and pace of Hyperoptic’s network, and are proud to partner with the UK’s leader in delivering gigabit speed to every urban centre.”

Hyperoptic CEO Dana Tobak commented: “Such large financial backing from prestigious investors is testament to the strength of Hyperoptic’s business model and proven track record for delivery. All our teams are forging ahead with one rally cry: Let’s Gigabit Britain.”

Boris Ivanovic, chairman at Hyperoptic, said: “Hyperoptic has the vision, determination and means to lead the rollout of gigabit connectivity across this country, and smash the digital divide once and for all.

“I am proud that we have led by results. This latest round of funding is a tremendous recognition of our achievement and provides the impetus for making Hyperoptic the premier full fibre national network.”

Digital Minister Margot James said of the deal: “We recently announced plans for a nationwide full fibre broadband network to build a Britain that’s fit for the future.

“Commercial investment will play a crucial part of this, and Hyperoptic’s commitment to deliver gigabit connectivity to more than 50 UK towns and cities shows that they match our ambitions.”