Strategic partnership for Hamburg's digital future: HGV acquires 49.9 percent of willy.tel

Hamburg, June 20, 2024 – Yesterday, Wednesday, HGV and willy.tel GmbH signed a notarized share purchase and transfer agreement. This gives the city's holding company a 49.9 percent stake in the medium-sized, family-owned business. This transaction fulfills a request from the Hamburg Parliament to actively strengthen the Hanseatic city's digital infrastructure through corporate investments. Financing is provided directly by HGV and will not burden the city budget. The completion of the agreements is still subject to approval by the Parliament and antitrust review, which are expected by autumn 2024.

The investment focuses on the consistent expansion of Hamburg's fiber optic infrastructure. willy.tel already has a substantial network and currently serves over 150,000 households. The partnership aims to connect approximately 100,000 additional households to the fiber optic network in the coming years. HGV is contributing not only capital, but above all, synergy potential within the city's overall network – particularly in collaboration with other city-owned companies that rely on network infrastructure. willy.tel impressed in the preliminary market analysis process with its long-term concept, extensive market expertise, and established existing infrastructure.

Investing in the City's Future Viability

Finance Senator and HGV Supervisory Board Chairman Dr. Andreas Dressel and HGV Managing Director Dr. Isabella Niklas emphasize the strategic relevance: "With this investment, we are making a significant investment in the future viability of our city. Hamburg is already a leader in the Smart City Index, and by combining willy.tel's market expertise with the strength of the city's holding company, we can further expand digital participation. This partnership fits perfectly into our portfolio for advancing infrastructure synergistically and for the benefit of all."

The family-owned company also welcomes this move. “As a company, we have always thought long-term and have invested in state-of-the-art technology since 2005. With the City of Hamburg (FHH) at our side, we can maintain our strong service orientation while simultaneously growing with a powerful partner,” explain Bernd and Tanja Thielk, Managing Directors of willy.tel GmbH.

The joint expansion program is scheduled to begin operationally in early 2025. Until then, the focus will be on the formal completion of the transaction and the preparation of the joint expansion plan. With this step, Hamburg is solidifying its position as a metropolitan region with one of the highest fiber optic coverages in Germany and creating the conditions for future innovations in the areas of work, mobility, and education.

To our company participation

www.willytel.de