InfraVia, Liberty Global and Telefonica Acquire Substantial Group
InfraVia, Liberty Global (LBTYA) and Telefonica (TEF) have announced an agreement to acquire Substantial Group. Founded in 2019, Substantial Group, owned by investors Advencap, DigitalBridge and Soho Square Capital, is the UK's second largest alternative fibre provider, expected to have more than 3.4 million fibre premises and over 500,000 customers by completion. The acquisition will be made by the parties' joint venture company, nexfibre, and will unlock GBP 3.5 billion of investment in the UK market. Infravia, Liberty Global and Telefonica are committing GBP 1B in new net funding for nexfibre to fund the transaction - made up of GBP 850m from Infravia and GBP 150M jointly from Liberty Global and Telefonica, with Virgin Media O2 committing traffic on 4.6m overlapping and adjacent homes. In a joint statement, Vincent Levita, Founder & CEO, InfraVia Capital Partners, Mike Fries, Chairman & CEO, Liberty Global and Marc Murtra, Chairman & CEO, Telefonica 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 GBP 3.5 billion 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."
