InfraBridge-backed VX UK Holdings Limited and Freedom Fibre Limited, two growing UK alternative local fiber providers, have agreed to combine their businesses. When the deal is completed, InfraBridge will control the combined entity.
The new business will operate as Freedom Fibre Limited and will be run by Neil McArthur, Freedom Fibre's founder and chief executive officer. Darren Woods, Freedom Fibre CFO, will have the same role in the enlarged business.
Fiber assets are a key element of the deal.
The deal will combine adjacent fiber to the premises (FTTP) networks focused on the North West of England and the Midlands. As a combined company, InfaBridge will have over 285,000 premises and integrate the operations of VX UK and Freedom Fibre into a single group by acquiring the UK assets and operations of VX UK by Freedom Fibre.
Another notable aspect of the deal is that the two providers have an established local presence in their markets.
VX UK has a strong presence 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 local consumers through its LilaConnect brand alongside a wholesale offering for local ISPs. VX also has fiber assets in Bristol and Colchester.
Freedom Fibre, which debuted in 2020, offers wholesale-only services on its network and benefits from a long-term wholesale agreement with TalkTalk. Freedom Fibre secured its first Building Digital UK (BDUK) gigabit tender earlier this year and, in 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.
“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,” said Damian Stanley, managing partner for InfraBridge. “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 of Equitix, agreed that as a combined company, the new provider will be able to respond to customer needs more effectively.
“Scale and resources are critical factors needed to commercialize a UK altnet successfully. This merger of Freedom Fibre and VX UK will contribute significantly to these two critical factors, accelerating the growth of the combined businesses and creating a larger network with both a wholesale and retail network offering for our growing customer base.”
After meeting customary regulatory approvals, the deal is expected to close by the end of the first quarter 2024.
Sean Buckley
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