Houlihan Lokey Advises Infrabridge-Backed VX UK

Houlihan Lokey is pleased to announce that InfraBridge-backed VX UK Holdings Ltd. (VX UK) and Freedom Fibre Ltd. (Freedom Fibre), two of the leading UK alternative local fibre providers, have combined their businesses. Houlihan Lokey acted as the exclusive financial advisor to VX UK. The transaction was completed on 27 March 2024.

The transaction combines adjacent fibre to the premises (FttP) networks focused principally on the Northwest of England and the Midlands. The combined business will have more than 285,000 premises passed and combine the operations of VX UK and Freedom Fibre into a single group through the acquisition of the UK assets and operations of VX UK by Freedom Fibre.

The new business will operate as Freedom Fibre Ltd. and will be run by Neil McArthur, Freedom Fibre founder and Chief Executive Officer. Darren Woods, currently Freedom Fibre's Chief Financial Officer, will have the same role in the enlarged business.

Both VX UK and Freedom Fibre have a strong regional presence in their respective markets. VX UK has a strong presence in Stoke on Trent and the surrounding areas through its unique contract with Stoke City Council, which provides connectivity for local authority premises, underpinning essential local services. VX UK markets its broadband service to local consumers through its LilaConnect brand alongside a wholesale offering for local ISPs. VX also has fibre assets in Bristol and Colchester.

Freedom Fibre launched in 2020 and offers wholesale-only services on its network and benefits from a long-term wholesale agreement with TalkTalk, a leading UK broadband provider. Freedom Fibre secured its first Building Digital UK (BDUK) gigabit tender earlier this year and, in 2023, began offering a range of B2B products. TalkTalk has been a minority shareholder since 2021 and will remain a shareholder in the combined business.