A significant consolidation is underway in the UK’s digital infrastructure landscape as InfraVia Capital Partners, Liberty Global, and Telefónica, through their joint venture nexfibre, have agreed to acquire Substantial Group, the parent company of Netomnia, for an enterprise value of £2 billion. This landmark deal is poised to inject £3.5 billion into the UK market, creating a formidable wholesale fibre challenger to BT Openreach and enhancing competition in the broadband sector.
Substantial Group, founded in 2019 and backed by Advencap, DigitalBridge, and Soho Square Capital, is recognized as the UK’s second-largest alternative fibre provider. Upon completion of the acquisition, it is projected to encompass over 3.4 million fibre premises and serve more than 500,000 customers. This strategic move by nexfibre aims to bolster competition and strengthen the UK’s digital infrastructure, offering greater choice and quality to consumers and businesses.
The collaboration between InfraVia, Liberty Global, and Telefónica brings together significant strengths to create a robust wholesale fibre network. The combined footprint of nexfibre and Virgin Media O2 is expected to reach approximately 20 million premises. This consolidation is seen as a crucial step in the evolution of the UK’s fibre market, addressing the need for scaled and sustainable platforms to drive genuine wholesale competition.
As part of the agreement, nexfibre will divest Substantial Group’s retail operations, including the YouFibre and Brsk brands, to Virgin Media O2 for £150 million. This ensures continuity for existing customers while allowing nexfibre to focus on its wholesale strategy. Furthermore, nexfibre will finance the fibre upgrades for 2.1 million Virgin Media O2 homes adjacent to Netomnia’s network. Virgin Media O2 will commit wholesale traffic across 4.6 million premises and receive approximately £1.1 billion in cash, along with an indirect 15% stake in nexfibre.
InfraVia is set to provide £850 million in new funding, with Liberty Global and Telefónica jointly contributing £150 million. This substantial investment underscores confidence in the UK as an attractive market for long-term infrastructure development. The transaction is subject to customary regulatory approvals and is expected to be finalized by the third quarter of 2026, marking a significant milestone in the UK’s journey towards widespread full-fibre coverage.