The new group will have a combined network footprint of 1.5 million premises, with a target of reaching 3 million premises by the end of next year.
Netomnia and Brsk have built 1.5 million premises ready for service, with 140,000 customers connected so far using £300 million of debt. The merger company plans to use up to £900 million of debt to grow the footprint to 3 million premises.
Since 2020, Netomnia and Brsk have raised more than £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 and Rand Merchant Bank, joining existing lenders Alpha Bank, Ares, Barclays, HSBC UK, ING, NIBC, Nord/LB, Standard Chartered, RBC and UKIB.
Jeremy Chelot, CEO of Netomnia, said, “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, said, “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. Customers will be able to access an alternative FTTP platform that offers 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.