Telefónica and Liberty Global, alongside investment firm InfraVia, have agreed to acquire UK alternative network provider Netomnia in a deal valuing its parent company, Substantial Group, at £2 billion (€2.3 billion).
The transaction will be carried out through Nexfibre, the UK full-fibre broadband venture backed by the three partners. The companies said the acquisition is expected to attract around £3.5 billion in international investment into the United Kingdom’s digital infrastructure sector.
Following the announcement, shares of Liberty Global rose more than 10 per cent. Telefónica’s shares were marginally lower on the day, while InfraVia is privately held and does not trade publicly.
Consolidation in UK Fibre Market
The deal marks a significant consolidation move within the UK’s alternative network provider, or “altnet”, sector. Industry observers have long expected a wave of mergers as smaller fibre operators face mounting financial pressures.
Rising construction costs, overlapping network rollouts and tighter credit conditions have created challenges across the sector. Many smaller players have struggled to secure the funding needed to complete long-term infrastructure projects.
Netomnia has established a strong presence in full-fibre broadband networks across mid-sized towns and cities beyond major urban centres. Integrating its network into Nexfibre is expected to expand geographic coverage and strengthen the combined entity’s financial capacity.
Strengthening Long-Term Infrastructure
Analysts say the acquisition reinforces the UK fibre market’s position as an attractive long-term infrastructure investment, despite recent pressures. Capital is increasingly concentrating around larger platforms that can sustain extensive build programmes.
The consolidation of Netomnia into Nexfibre is seen as part of a broader industry shift, with investors favouring scale and operational efficiency in a capital-intensive market.
The deal remains subject to regulatory approval.
