Nexfibre, a company owned by InfraVia Capital Partners, Liberty Global and Telefónica is acquiring the UK’s second largest alternative fibre provider for £2bn (€2.3bn).
Nexfibre has agreed to acquire Substantial Group from its owners including Advencap, DigitalBridge and Soho Square Capital.
Infravia, Liberty Global and Telefónica are committing £1bn in new net funding for Nexfibre to fund the transaction, which is made up of £850m from InfraVia and £150m jointly from Liberty Global and Telefónica, with Virgin Media O2 committing traffic on 4.6m overlapping and adjacent homes.
Founded in 2019, Substantial Group is expected to have more than 3.4m fibre premises and over 500,000 customers by completion.
The combination of Nexfibre, Substantial Group’s Netomnia fibre network and the customers on 2.1m Virgin Media O2 premises, will create a scaled business with a full fibre footprint of around 8m premises by the end of 2027, the companies said.
In a joint statement, Vincent Levita, founder & CEO, InfraVia Capital Partners, Mike Fries, chairman & CEO, Liberty Global and Marc Murtra, chairman & CEO, Telefónica said: “By bringing our strengths together, we are creating a scaled and financially secure wholesale fibre challenger to BT Openreach – one that will enhance competition, strengthen the UK’s digital infrastructure and deliver greater choice and quality for consumers and businesses.
“This transaction unlocks £3.5bn in international investment and reflects our shared confidence in the UK as a highly attractive market for long‑term investment, supported by the government’s economic policies. We are committed to accelerating full‑fibre coverage and helping ensure the UK remains competitive and ready for the future.”
Rajiv Datta, CEO, Nexfibre said: “This transaction creates the largest alternative fibre platform in the UK, establishing the foundation for much-needed altnet consolidation, and sustainable wholesale competition. It will help drive innovation and deliver the economic and societal benefits that full fibre connectivity makes possible.”
Jeremy Chelot, group CEO, Substantial Group, said: “This landmark transaction with Nexfibre represents the natural evolution of the UK’s fibre market. Consolidation has been inevitable, and this deal creates the scaled, sustainable platform needed to drive genuine wholesale competition.
“Importantly, our retail brand, YouFibre, will remain post-close, ensuring our customers continue to receive the same trusted service they know today, while benefiting from the financial strength and infrastructure scale this combination delivers. This is about building a stronger future for UK fibre.”
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