InfraVia, Liberty Global and Telefónica announced an agreement to acquire Substantial Group through their joint venture, nexfibre, for £2 billion.
The acquisition is expected to unlock £3.5 billion in international investment, strengthen competition in the UK broadband market, and provide millions of UK consumers with faster access to full-fibre broadband.
The combination of nexfibre, Substantial Group’s fibre network (Netomnia) and 2.1 million Virgin Media O2 premises, which will be upgraded to fibre by nexfibre, will create a financially secure challenger to BT Openreach. The full fibre footprint is expected to cover around 8 million premises by the end of 2027. Together with Virgin Media O2’s network, the combined networks will reach 20 million premises, offering internet service providers a highly attractive wholesale alternative.
InfraVia, Liberty Global and Telefónica are committing £1 billion in new funding for nexfibre, comprising £850 million from InfraVia and £150 million jointly from Liberty Global and Telefónica. Virgin Media O2 will commit traffic on 4.6 million overlapping and adjacent homes. The acquisition will also include the sale of Substantial Group’s retail business, including the YouFibre and Brsk brands, to Virgin Media O2 for £150 million.
nexfibre will finance the fibre upgrade of 2.1 million VMO2 homes adjacent to the Netomnia footprint, with wholesale fibre access fees paid by VMO2 customers. VMO2 will also pay wholesale fibre access fees on 2.5 million homes that overlap with Netomnia. In exchange for the traffic commitment on 4.6 million premises, Virgin Media O2 will receive approximately £1.1 billion in cash and an indirect 15% stake in nexfibre. VMO2 will provide a full suite of managed services, including construction, in return for ongoing management and construction fees. Completion is subject to customary regulatory approvals and is expected by Q3 2026.
Vincent Levita, Founder & CEO, InfraVia Capital Partners, Mike Fries, Chairman & CEO, Liberty Global and Marc Murtra, Chairman & CEO, Telefónica
By bringing our strengths together, we are creating a scaled and financially secure wholesale fibre challenger to BT Openreach – one that will enhance competition, strengthen the UK’s digital infrastructure and deliver greater choice and quality for consumers and businesses. This transaction unlocks £3.5 billion in international investment and reflects our shared confidence in the UK as a highly attractive market for longterm investment, supported by the government’s economic policies. We are committed to accelerating fullfibre coverage and helping ensure the UK remains competitive and ready for the future.
Rajiv Datta, CEO, nexfibre
This transaction creates the largest alternative fibre platform in the UK, establishing the foundation for much-needed altnet consolidation, and sustainable wholesale competition. It will help drive innovation and deliver the economic and societal benefits that full fibre connectivity makes possible.
Jeremy Chelot, Group CEO, Substantial Group
This landmark transaction with nexfibre represents the natural evolution of the UK’s fibre market. Consolidation has been inevitable, and this deal creates the scaled, sustainable platform needed to drive genuine wholesale competition. Importantly, our retail brand, YouFibre, will remain post-close, ensuring our customers continue to receive the same trusted service they know today, while benefiting from the financial strength and infrastructure scale this combination delivers. This is about building a stronger future for UK fibre.
