LONDON–(BUSINESS WIRE)–InfraBridge-backed VX UK Holdings Limited (“VX UK”) and Freedom Fibre Limited (“Freedom Fibre”), two of the leading UK alternative local fibre providers, have signed an agreement to combine their businesses. InfraBridge will control the combined entity following the close of the transaction.
The transaction combines adjacent fibre to the premises (“FttP”) networks focused principally on the North West of England and the Midlands. The combined business will have more than 285,000 premises passed and combine the operations of VX UK and Freedom Fibre into a single group through the acquisition of the UK assets and operations of VX UK by Freedom Fibre.
The new business will operate as Freedom Fibre Limited and will be run by Neil McArthur, Freedom Fibre founder and Chief Executive Officer. Darren Woods, currently Freedom Fibre Chief Financial Officer, will have the same role in the enlarged business.
Both VX UK and Freedom Fibre have a strong regional presence in their respective markets. VX UK has a strong presence in Stoke on Trent and the surrounding areas through its unique contract with Stoke City Council, which provides connectivity for local authority premises, underpinning essential local services. VX UK markets its broadband service to local consumers through its LilaConnect brand, alongside a wholesale offering for local ISPs. VX also has fibre assets in Bristol and Colchester.
Freedom Fibre launched in 2020 and offers wholesale-only services on its network and benefits from a long-term wholesale agreement with TalkTalk, a leading UK broadband provider. Freedom Fibre secured its first Building Digital UK (“BDUK”) gigabit tender earlier this year and during 2023 has begun offering a range of B2B products. TalkTalk has been a minority shareholder since 2021 and will remain a shareholder in the combined business.
Damian Stanley, Managing Partner, InfraBridge, said: “The combination of VX UK and Freedom Fibre, with the backing of our shareholders, brings together two of the UK’s leading altnets into a new, stronger company. Our businesses are highly complementary, including our geographic proximity, the quality of our network build and our retail and wholesale go-to-market strategies, and we now have a platform with the support of TalkTalk to provide ongoing connections across the enlarged business.”
Achal Bhuwania, CIO, Equitix, said: “Scale and resources are both critical factors needed to successfully commercialise a UK altnet. This merger of Freedom Fibre and VX UK will contribute significantly to these two critical factors, accelerating the growth of the combined businesses, creating a larger network with both a wholesale and retail network offering for our growing customer base.”
Neil McArthur, CEO, Freedom Fibre, said: “This is a strategic merger which leverages the strengths of both Freedom Fibre and VX UK to create a larger, stronger and more diverse business backed by two significant investors with ambitions for growth. We are delighted to be joining forces with the VX team and are hugely excited about the future potential of this newly combined business.”
The transaction is subject to regulatory approvals and is expected to close by the end of Q1 24.
VX UK’s parent company, VNEXT AB, headquartered in Sweden, remains managed by InfraBridge.
VX UK was advised by Houlihan Lokey; Freedom Fibre was advised by Cameron Barney. Weil and Ashurst provided legal advice to InfraBridge and Freedom Fibre, respectively.
About InfraBridge
InfraBridge is a leading infrastructure investment manager dedicated to investing in mid-market businesses in transportation and logistics, digital infrastructure, and energy transition, among other key sectors. The firm’s investment strategy applies private equity rigor with an active approach to asset management in order to maximize value and drive returns on behalf of investors. InfraBridge is a division of DigitalBridge Group, Inc. (NYSE: DBRG), a leading global digital infrastructure firm managing a $75 billion portfolio of digital infrastructure assets on behalf of its investors. InfraBridge is headquartered in London, United Kingdom.
For more information, visit: www.infrabridge.com
About Equitix
Equitix is a responsible investor, developer and fund manager with assets under management of over £10bn. Equitix investments span all sectors of critical infrastructure, enabling communities to undertake everyday activities, functions and deliver essential goods and services that allow people to provide for their social and economic wellbeing. Its investment operational capabilities span construction, installation, and maintenance, providing safe and sustainable operations for all its service users. Equitix has invested over £2bn in its Network Utilities sector covering Fibre, Electricity distribution, Gas distribution, Heat and Water networks distributing power, heat, data and much more through its pipes and cables. Equitix is headquartered in London, United Kingdom.
Bringing infrastructure to life.
For more information, visit: www.equitix.com
Contacts
InfraBridge
Ceci.Reissmeier@digitalbridge.com
Equitix
equitix@teneo.com
