Increasing financial demands that are being placed on some of the industry’s smaller competitors have driven a broadband company that offers full-fibre service to speed up its search for merger partners. This is because the market is becoming increasingly competitive. The reason for this is that the corporation is considering merging with other businesses, which is the reason for this reaction.
We have it on good authority that Zzoomm, which is supported by the large investor Oaktree Capital Management, which is based in the United States, has sought the assistance of Acuity Advisors, a company that specialises in technology, in order to study the prospect of opening up new business alternatives. This information comes from a reliable source.
Zzoomm has built a presence in close to thirty different market towns and minor metropolitan communities around the United Kingdom. These locations are diverse in terms of their population.
In June, the company issued a statement in which it expressed its belief that it was “well-positioned to make acquisitions in fragmented and competitive markets as we are growing faster, have a more highly valued brand and network, and have a stronger commercial proposition than many of our peers.”
Matthew Hare, the chief executive officer of Zzoomm, published a statement in which he indicated that “an expanded group, based around our established operational and effectiveness and technical infrastructure, would benefit from the economies of scale.” An expanded group would be able to take advantage of the economies of scale.
While Zzoomm was allegedly holding conversations with a number of other altnets regarding the possibility of combining forces, a source within the firm stated that these conversations were taking place. Skype was the medium through which these conversations were conveyed.
The so-called altnet domain is expected to experience a frenzy of consolidation, according to analysts, as firms struggle to deal with the increasing amount of interest payments on their loans. This is due to the fact that businesses are accumulating more and more loan obligations. This is because a significant number of these companies have to borrow considerable sums of money in order to finance their rollout investments. This is the reason why this is the case.
Over the course of the past few weeks, it has come to light that G Network, whose investors include the pension system for university professors in the United Kingdom, is collaborating with bankers in order to evoke interest in the acquisition of the company. This information also came to light during the course of the previous few weeks.
There are a number of businesses that have expressed an interest in acquiring G Network. One of these businesses is CityFibre Holdings, which is the most formidable competitor to the Openreach division of BT. Additionally, Community Fibre is one of the parties involved in this transaction, along with the other parties.
The bid that was submitted by Community Fibre, which was approximately 300 million pounds, was reportedly rejected right after it was presented, as indicated by sources.
In response to a question on the name of its potential merger targets, Zzoomm declined to provide a response to the inquiry.