In a significant move within the UK’s alternative network (altnet) market, FullFibre and Zzoomm have confirmed their merger, marking another step in the growing trend of industry consolidation. The announcement was made on January 27, and this merger is expected to enhance the capabilities of both companies, with an eye on further mergers and acquisitions (M&A) in the rapidly evolving market.
Key Merger Details: Combining Strengths for Future Growth
The merger will bring together FullFibre and Zzoomm’s combined assets, including 600,000 properties ready for service and more than 65,000 customers. While the financial terms of the agreement have not been disclosed, the companies have emphasized that this deal will create a solid foundation for continued growth and future M&A opportunities in the altnet space.
The newly formed company will benefit from economies of scale, stronger operational and financial infrastructure, and a highly experienced management team. The CEOs of both companies, Matthew Hare of Zzoomm and James Warner of FullFibre, will hold key roles in the merged entity. Hare will serve as the executive chairman, while Warner will take on the role of Group CEO.
“An enlarged business with the operational and financial infrastructure, benefitting from economies of scale, as well as a management team with an exceptional track record, we will have an excellent platform to combine with other altnets in the near future as well as driving organic growth faster,” said Matthew Hare, CEO of Zzoomm.
Strategic Leadership and Vision for the Future
Both leaders are confident that the merger will enable the combined entity to scale faster and deliver superior fiber connectivity. Warner noted, “This merger represents another significant step in our journey. With a shared commitment to delivering transformational full fiber connectivity with exceptional customer experience, this deal strengthens our collective ability to grow even faster and seize new market opportunities.”
Overview of FullFibre and Zzoomm: Market Presence and Capabilities
Zzoomm, established in 2018, operates across 29 market towns in England. The company boasts more than 200,000 ready-for-service properties and over 30,000 contracted customers. In comparison, FullFibre, founded a year earlier, spans 81 market towns and smaller urban communities, with 400,000 ready-for-service premises.
This combination of Zzoomm’s focus on market towns and FullFibre’s wider urban network will expand the reach of the newly merged company, providing a robust infrastructure to serve a larger customer base.
The Growing Trend of Altnet Consolidation in the UK
This merger is part of a broader consolidation trend in the UK’s fiber broadband market. Altnets, like FullFibre and Zzoomm, have played a crucial role in pushing the country’s fiber rollout, challenging established players such as Openreach and Virgin Media O2. CityFibre, a major altnet player, has already been active in consolidation, acquiring Lit Fibre in May of the previous year, adding 300,000 premises to its footprint.
Greg Mesch, CEO of CityFibre, highlighted that altnets have been instrumental in accelerating fiber deployment in the UK, particularly in areas that were underserved by the large incumbents.
The Impact of the Merger on the UK Fiber Market
The FullFibre-Zzoomm merger signals a shift in the competitive dynamics of the UK’s broadband market. By combining resources, the two companies can challenge larger broadband providers and offer competitive alternatives, especially in rural and suburban areas. Their focus on full fiber connectivity, paired with an exceptional customer experience, positions them well for future growth in a rapidly evolving market.
This deal also highlights the significant role that altnets continue to play in shaping the UK’s broadband landscape, helping to create a more diverse and competitive environment for consumers.
FAQ Section
What prompted the FullFibre and Zzoomm merger?
The merger is part of the broader trend of consolidation in the UK altnet sector, aimed at creating stronger, more competitive companies that can scale quickly and drive organic growth. Both companies see the merger as an opportunity to enhance their operational infrastructure and expand their market reach.
What will the leadership structure look like after the merger?
After the merger, Matthew Hare, the CEO of Zzoomm, will serve as executive chairman, while James Warner, the CEO of FullFibre, will take on the role of Group CEO.
What is the impact of this merger on UK consumers?
The merger is expected to accelerate the rollout of full fiber connectivity, especially in rural and underserved areas, providing more competitive alternatives to traditional broadband providers. Consumers can expect improved service offerings and greater access to high-speed internet.
