UK fibre infrastructure company nexfibre, in collaboration with Virgin Media O2, has announced a deal to acquire fibre operator Upp in a move to bolster fibre infrastructure in the East of England. The acquisition is set to enhance nexfibre's network by 175,000 premises in the region and ensure a sustained investment in its expansion.
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Partnership Details
Nexfibre, a UK fibre builder jointly owned by Liberty Global, Telefonica, and InfraVia Capital Partners, has partnered with Virgin Media O2 to acquire UK fibre operator, Upp. According to the statement, under the all-cash agreement, Virgin Media O2 will initially purchase Upp and carry out integration work, while nexfibre will fund the acquisition through a back-to-back agreement.
Fibre Footprint Expansion
The acquisition is expected to boost nexfibre's fibre footprint by approximately 175,000 premises in the East of England. According to the statement, this will enhance the regional fibre network and ensure continued investment and network expansion in the area. The acquired network has minimal overlap with the existing Virgin Media O2 footprint, making it a valuable addition to nexfibre's assets.
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Gigabit Connectivity
Virgin Media O2 plans to extend its gigabit connectivity services to more homes in the region through its access to the nexfibre network. Over the next 12 months, Virgin Media O2 will complete Upp's ongoing network build, integrate Upp's fibre network and systems, and offer Upp customers a range of Virgin Media O2 services. The completion of the acquisition of network assets by Nexfibre is expected within the next year as the second stage of the transaction.
Nexfibre, with Virgin Media O2 as a build supplier, said it will continue to expand its network in the East of England, with an expected investment of over GBP 350 million to reach more than 500,000 premises by 2026.
Upp's around 4,000 existing retail and business customers will be offered a wide range of Virgin Media O2 services in the coming months, with no immediate service changes due to the transaction.
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Upp Background
Upp, formerly known as FibreMe, was founded in 2021 and has been providing full-fibre connectivity to homes and businesses in the East of England and East Midlands, including areas such as Boston, Lincoln, Norwich and King's Lynn.
According to the statement, nexfibre is investing GBP 4.5 billion to bring fibre to 5 million homes by 2026 with the option of reaching a total of 7 million homes beyond that.
Nexfibre and Virgin Media O2 are reported to have a clear strategy to become a significant challenger in the UK's fibre market, offering increased choice and competition to BT.
The acquisition is expected to facilitate the growth of high-quality fibre infrastructure in the East of England, improving internet access and connectivity options for residents and businesses in the region.
