Netomnia, Brsk merge
June 18, 2024
Netomnia and Brsk, two fast-growing alternative networks (altnets) in the UK telecommunications industry, have announced a merger which they say will establish “the only scaled and capital-efficient retail, wholesale and consolidation platform in the market”. The new group will have a combined network footprint of 1.5 million premises immediately post-merger, with a target of reaching 3 million premises by the end of next year.
Netomnia and Brsk built 1.5 million premises Ready for Service (RFS) and connected 140,000 customers so far using £300 million of debt. They plan to use up to £900 million of debt to grow the footprint to 3 million premises, demonstrating the companies’ approach to capital management.
Since 2020, Netomnia and Brsk have raised over £1.3 billion of capital, with support from investors Advencap (shareholders of both Netomnia and BRSK), DigitalBridge, and Soho Square Capital. DigitalBridge and Advencap will be committing additional equity funding as part of this raise. Recently, Netomnia secured an additional £147 million in debt from two new lenders, JP Morgan (JPM) and Rand Merchant Bank (RMB), joining existing lenders Alpha Bank, Ares, Barclays, HSBC UK, ING, NIBC, Nord/LB, Standard Chartered, RBC, and UKIB.
Jeremy Chelot, CEO of Netomnia, commented: “By merging our network expertise and resources, we are creating a powerhouse to deliver an unparalleled internet experience for our customers, driving innovation and further consolidation among altnets. The additional capital from our investors and support from our lenders is a powerful endorsement of our vision and ability to execute at the highest level.”
Giorgio Iovino, CEO of Brsk, added: “The merger is a testament to our shared entrepreneurial spirit and experienced teams that can deliver even more. Together, we are set to deliver a fibre network that is not only fast and reliable but also future-proof, ensuring our customers benefit today and tomorrow. Our joint platform will be where the most powerful internet lives.”
The merger is set to be finalised in the coming weeks, pending regulatory approval, enabling customers to benefit from an alternative FTTP platform that offers a seamless network experience, unified pricing, and enhanced service quality across the shared footprint. The newly merged entity will be led by Chelot as Chief Executive Officer and Wil Wadsworth as Chief Financial Officer. Iovino and Ian Kock will remain as Chief Executive Officer and Chief Operating Officer, respectively, of Brsk.