InfraVia, Liberty Global and Telefónica, which together form the telecom joint venture Nexfibre, are set to acquire the UK's alternative network provider Netomnia for £2bn (€2.3bn), according to an announcement on Wednesday.
Nexfibre, the UK full-fibre broadband venture backed by InfraVia, Liberty Global and Telefónica, is set to buy alternative network provider Netomnia.
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According to an announcement on Wednesday, the deal agreed values Netomnia's parent company, Substantial Group, at £2bn (€2.3bn), and it is anticipated that it will attract around £3.5bn (€2.3bn) of international investment into the UK.
Shares of Liberty Global are trading over 10% higher following the announcement. As for the other two companies that make up Nexfibre, InfraVia is not publicly traded and Telefónica hasn't seen much movement as it is down around 1% for the day.
The move consolidates two of the more credible independent fibre operators in the wholesale space and reinforces the market's position as a top investment choice for long-term infrastructure at a difficult time for the alternative network provider sector.
Rising construction costs, overlapping rollout footprints and tighter credit conditions have squeezed smaller operators. However, Netomnia has built a meaningful full-fibre presence in mid-sized towns and cities beyond the major urban centres.
Folding it into Nexfibre gives the combined entity greater geographic reach and financial firepower.
Analysts have anticipated a shakeout among UK altnets for some time. This acquisition suggests that process is now firmly underway, with capital consolidating around platforms large enough to carry long-term build programmes to completion.
The deal remains subject to regulatory clearance.
