Infranode, an infrastructure investor in the Nordics, today announced that it has entered into a long-term partnership with the municipality-owned power & utility company Tafjord Kraft AS and has acquired a 49% stake in Tafjord Connect, the largest fiber infrastructure and internet service provider (ISP) in Møre og Romsdal, part of western Norway. At the same time, Tafjord Kraft remains the majority owner of Tafjord Connect, with a 51% ownership stake.
Prior to Infranode’s minority stake acquisition in Tafjord Connect, Tafjord Kraft owned 80% of the company, while the remaining 20% was owned by Nordvest Nett AS. As such, Nordvest Nett is selling out of Tafjord Connect completely.
Finally, the transaction is expected to be completed during Q3 2022.
Tafjord Connect – Overview
In Møre og Romsdal, Tafjord Connect is the largest fiber infrastructure and internet service provider (ISP), with more than 25k customers. The company was established through a merger between Tafjord Kraft AS’ telecom services department and Nordvest Nett AS’ fiber operations in October 2019.
Presently, Tafjord Connect has 37 full-time equivalents (FTEs) and, in 2021, generated revenue of $25m USD (NOK 222m). With the financial support of Infranode, Tafjord Connect will be able to further develop by investing into its fiber network.
Tafjord Connect is part of the TAFJORD Group, the largest energy company in the northwestern region of Norway, which is owned by the Municipality of Ålesund, Eviny, and the Municipality of Fjord.
Norway – Fiber Infrastructure
Norway has a relatively established fiber market, covering 66% of all fixed broadband subscriptions in the private market. Also, less than 5% of Norway’s subscriptions are over copper networks.
Infranode – Overview
Infranode is headquartered in Stockholm, Sweden, manages €1.8bn in committed capital, and invests on behalf of millions of Nordic pensioners. Select examples of Infranode’s institutional investors are: Folksam, the European Investment Bank (EIB), KPA Pension, the Fourth Swedish National Pension Fund, LähiTapiola, IMAS Foundation, Posten’s Pension Fund, Swedish Church Pension Fund, Keva, and Storebrand.
In terms of strategy, Infranode is a long-term investor in municipal, regional, and national infrastructure in the Nordics. Specifically, the firm invests within the following infrastructure sectors and sub-sectors:
- Transportation: public transport, rail, depots, airports, ports, roads, bridges, tunnels, electrification
- Energy: electricity distribution and transmission; water, sewage, and waste management; district heating and cooling; renewable energy; and street lighting
- Digital: towers, data centers, fiber
- Social: healthcare, education, leisure, welfare, culture, emergency services, other government buildings
Overall, Tafjord Connect marks Infranode’s first investment in the fiber sub-sector of digital infrastructure.