German national rail carrier Deutsche Bahn (DB) has agreed to sell its international subsidiary Arriva Group to US infrastructure asset management firm I Squared Capital. The exact value of the deal remains undisclosed, but according to the Financial Times, it is estimated to be around EUR 1.6 billion including debt. The transaction is pending approval by DB's board of directors and the German Ministry of Transport and is expected to be completed in early 2024.

Operating in ten European countries and with approximately 35,500 employees, Arriva's operations span various transport segments, including bus and train services in the UK, as well as operations in the Netherlands, the Czech Republic, Croatia, Hungary, Italy, Poland, Slovakia, Slovenia and Spain. The transaction follows Deutsche Bahn's efforts over several years to divest part of Arriva in order to raise funds to reduce its debt burden and support its domestic operations. Deutsche Bahn originally bought Arriva in 2010 for GBP 1.5 billion. Arriva's businesses in 'non-core markets', including Sweden and Portugal, have already been sold.

I Squared Capital, an independent global infrastructure manager overseeing more than $37 billion in assets, focuses on investments in North America, Europe, Asia and Latin America. The firm is headquartered in Miami and operates through a network of offices in Hong Kong, London, Delhi, Singapore, Taipei and Sydney, employing more than 230 people. I Squared's diverse portfolio includes investments in 72 companies in 59 countries and spans sectors such as utilities, energy, digital infrastructure and transportation.