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G.Network, a full-fibre broadband wholesaler, has launched a fresh attempt to secure a sale, signalling a new wave of consolidation among the providers trying to challenge BT and Virgin Media O2.
With a network spanning 416,000 homes in London, G.Network has instructed bankers at Jefferies and Nomura to contact potential buyers again, having first appointed them 18 months ago to explore a deal.
The banks have been contacting rival so-called alternative network providers over the past week to gauge their interest in a potential takeover, according to two people familiar with the matter, having failed to secure a buyer last year. G.Network, Jefferies and Nomura declined to comment.
The move comes as altnets, whose networks now cover about 40 per cent of the country according to consultancy Enders, have stepped up their hunt for financing and deals. The groups, which are racing to build out full fibre to challenge Openreach and Virgin Media O2, are seeking scale to cope with high borrowing costs and pressure from shareholders for returns.
Consolidation is benefiting larger players such as CityFibre, which has set out its aim to build up its network through dealmaking, and last week agreed to acquire fibre network Connexin for undisclosed terms.
Karen Egan, head of telecoms at Enders, estimated that Connexin’s shareholder, asset manager Patrizia, would take a 1.5 per cent stake in CityFibre as part of the agreement. Patrizia did not immediately respond to a request for comment.
CityFibre is one of the companies that G.Network has approached, according to the people familiar with the matter. The smaller provider, which was founded in 2016, has previously spoken with up to ten companies about a potential merger or acquisition, they said.
According to Companies House filings from 2024, G.Network’s total assets were valued at £450mn. London-focused altnet Community Fibre, as well as Virgin Media 02 had previously looked at acquiring the company, but decided against a bid for financial reasons, according to two people familiar with those companies.
Virgin Media 02 is also currently seeking £1bn from investors to launch its new wholesale fibre business NetCo in the UK, according to two people familiar with the process. They said BlackRock’s GIP was among groups which had expressed interest in the minority stake, but that finding a buyer was taking time. Virgin Media 02 and GIP declined to comment.
Analysts have long predicted a pick-up in dealmaking among altnets, which suffered collective losses of £1.3bn in 2023 according to Enders. CityFibre hopes to add around 700,000 homes through tie-ups this year, with its deal with Connexin likely to add up to 185,000 premises to its network.
Companies are also returning to investors for more financing, as they continue building out networks. Gloucestershire-based group Netomnia is on track to announce a new round of funding in the coming weeks, according to people familiar with the company’s thinking.
Netomnia is targeting its first year of profitability this year, and aiming to deliver over £100mn in revenues. The company declined to comment.
