MADRID (dpa-AFX) - InfraVia Capital Partners, Liberty Global Ltd (LBTYA) and Telefónica on Wednesday said they have agreed to acquire Substantial Group through their joint venture, nexfibre, for an enterprise value of £2 billion.
Substantial Group, founded in 2019 and owned by Advencap, DigitalBridge and Soho Square Capital, is the UK's second-largest alternative fibre provider and is expected to have more than 3.4 million fibre premises and over 500,000 customers by completion.
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 £3.5 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.'
Combined with Virgin Media O2's existing footprint, the networks are expected to reach about 20 million premises.
As part of the deal, nexfibre will sell Substantial Group's retail operations, including the YouFibre and Brsk brands, to Virgin Media O2 for £150 million. Nexfibre will also finance fibre upgrades to 2.1 million adjacent Virgin Media O2 homes, while Virgin Media O2 will commit wholesale traffic across 4.6 million premises and receive approximately £1.1 billion in cash and an indirect 15% stake in nexfibre.
InfraVia will provide £850 million of new funding, with Liberty Global and Telefónica contributing £150 million jointly.
The transaction is expected to close by the third quarter of 2026.
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