FullFibre and Zzoomm have announced plans to merge. Once operational, the combined entity will boast a formidable network—encompassing approximately 600,000 properties with ready service access and more than 65,000 active customers.
The merger brings together FullFibre, a wholesale full-fibre network operator with its in-house retail ISP arm BeFibre, and Zzoomm, an established and fast-growing player in the fibre broadband sector. The merged company will likely not only expand its operations and optimise efficiencies, but also spearhead further mergers and acquisitions (M&A) in the fragmented alternative network (altnet) industry.
Matthew Hare, current CEO of Zzoomm, will assume the role of executive chairman. James Warner, CEO of FullFibre, will take charge as the Group CEO.
“The management teams from both companies have proven track records,” a joint statement highlighted. “They have the relevant experience, expertise, and resources to lead and develop the enlarged group faster, providing outstanding broadband services to consumers, businesses, and wholesale markets.”
The merger aims to combine two complementary networks and business models. This alignment is expected to create significant opportunities for growth through an expanded service footprint, increased operational efficiency, and access to funding for additional network builds and potential future mergers.
“With our clear focus on serving happy customers with brilliant broadband, Zzoomm has delivered for a number of years industry-leading organic growth across its network,” Hare commented.
“We have consistently stated our strategy is to grow organically and by M&A in this fragmented market. An enlarged business with the operational and financial infrastructure, benefiting from economies of scale, as well as a management team with an exceptional track record, will have an excellent platform to combine with other altnets in the near future as well as driving organic growth faster.”
The scale that the union brings is also expected to enhance the wholesale opportunities for ISPs, opening up valuable new revenue streams.
“With a shared commitment to delivering transformational full-fibre connectivity with exceptional customer experience, this deal strengthens our collective ability to grow even faster and seize new market opportunities,” says Warner.
“For FullFibre, this is our second merger and another milestone in our mission to create a 21st-century digital backbone for the nation. Following our recent successful integration with Digital Infrastructure and BeFibre, this next merger further accelerates our ambitions to lead the market and provide unmatched connectivity to homes, businesses, and wholesale partners alike.”
The deal is not yet finalised and remains subject to regulatory approval and the execution of final documentation. If all goes to plan, the merger is expected to be completed in early 2025.
The rapid development of full-fibre networks is a significant part of the UK’s digital strategy, as the government seeks to improve connectivity for homes and businesses. However, the sector remains fragmented, with numerous altnets vying for market share.
By merging, FullFibre and Zzoomm aim to position themselves as a stronger alternative to larger national providers while setting the stage for more consolidation within the altnet space.
See also: CityFibre begins rollout in all nine ‘Project Gigabit’ areas
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