G.Network renews push for sale amid altnet consolidation
Deal News | Mar 31, 2025 | EIN
G.Network, a London-based full-fibre broadband wholesaler, is reigniting its efforts to secure a sale, reflecting a growing trend of consolidation in the alternative network provider (altnet) industry in the UK. The company has enlisted the help of investment banks Jefferies and Nomura to reach out to potential buyers. This marks a renewed effort after an unsuccessful attempt 18 months prior. The resurgence of interest in M&A activities amongst altnets comes as these companies seek to expand their networks to effectively rival established giants like BT and Virgin Media O2. The challenges of high borrowing costs and shareholder demands for returns further pressure these providers to pursue economies of scale. Larger players such as CityFibre are benefiting from this consolidation, exemplified by its recent acquisition of Connexin. Despite previous interest from Virgin Media O2 and Community Fibre, G.Network remains available, with CityFibre among the companies it is courting this time around. Meanwhile, other market participants like Virgin Media O2 and Netomnia are exploring new financing avenues to support ongoing network expansions.
Sectors
- Telecommunications
- Private Equity and Investment
Geography
- United Kingdom – The article discusses UK-based companies, specifically those involved in the telecommunications sector as alternative network providers seeking consolidation and expansion.
Industry
- Telecommunications – The article focuses on the telecommunications industry, particularly on alternative network providers (altnets) in the UK, and their strategic moves, including M&A, to compete with established telecom giants.
- Private Equity and Investment – Involvement of financial advisory firms, investment banks, and asset managers indicates the role of investment and private equity in the M&A activities within the telecommunications sector.
Financials
- 450mn – The total asset value of G.Network as per Companies House filings in 2024.
- 1.3bn – The collective losses suffered by alternative network providers in 2023.
- 1bn – The amount Virgin Media O2 is seeking from investors for its new wholesale fibre business, NetCo.
- 1.5% – The stake expected to be taken by Patrizia in CityFibre as part of the Connexin acquisition agreement.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| G.Network | Target Company | Company | A full-fibre broadband wholesaler operating in London, seeking to sell its business. |
| Jefferies | Investment Bank | Company | One of the investment banks appointed by G.Network to explore potential buyer interest. |
| Nomura | Investment Bank | Company | Another investment bank working with G.Network to approach potential buyers. |
| CityFibre | Potential Buyer | Company | A larger alternative network provider looking to expand its network through acquisitions like that of Connexin. |
| Virgin Media O2 | Potential Buyer | Company | A major telecommunications company that had previously considered acquiring G.Network. |
| Patrizia | Possible Shareholder | Company | An asset manager expected to acquire a stake in CityFibre following its acquisition of Connexin. |
| BlackRock's GIP | Potential Investor | Company | Investor group interested in a stake in Virgin Media O2's new wholesale fibre business, NetCo. |
| Netomnia | Telecommunications Company | Company | A UK-based group seeking new funding to continue its network build-out. |
| Community Fibre | Potential Buyer | Company | An alternative network provider previously interested in acquiring G.Network. |
| Connellin | Acquired Company | Company | A fibre network provider recently acquired by CityFibre. |