InfraBridge will control the new entity following the deal closing. The transaction combines adjacent FTTP networks focused mainly on the north west of England and the Midlands.
The new business will have more than 285,000 premises passed. It will also combine the operations of the two entities 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, founder and chief executive officer of Freedom Fibre. Darren Woods, chief financial officer at Freedom Fibre, will have the same role in the enlarged business.
VX UK is prevalent in Stoke on Trent and the surrounding areas through its contract with Stoke City Council, which provides connectivity for local authority premises. VX UK markets its broadband service to 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. It provides wholesale-only services on its network and benefits from a long-term wholesale agreement with TalkTalk. Freedom Fibre secured its first Building Digital UK gigabit tender and began offering a range of B2B products in 2023. 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.”
Freedom Fibre’s McArthur, 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 deal is subject to regulatory approvals and is expected to close by the end of Q1 2024.