£49m sale of internet infrastructure firm

Steve Jagger, CTO Quickline Communications Limited.

Leading alternative provider of super-fast and ultra-fast broadband services, Bigblu Broadband has agreed the conditional sale of Quickline, the holding company for Quickline Communications.

The Hessle-based business is being sold for up to £48.6m to global private markets investment firm Northleaf Capital Partners, in a deal which will allow the firm to achieve its growth strategy and offers and “excellent return for shareholders”.

The deal will see a total cash consideration of £41.1m with the majority (£31.1m) payable on completion and a further £10.1m deferred and contingent on certain performance conditions being met by 31 March 2022 or 31 May 2022.

The remaining amount is being satisfied by £5.6m in loan notes on completion with a further £1.8m in loan notes subject to deferred considerations. These loan notes could be converted partially to equity which if done would leave Bigblu Broadband with an 8% stake in the business.

Andrew Walwyn, chief executive officer of Bigblu Broadband said: “Through the sale of Quickline, Bigblu Broadband has once again demonstrated its ability to maximise the value of its interests in the high growth broadband connectivity market.”

Steve Jagger, CTO and founder, Quickline Communications, said: “We’re delighted with the prospect of working with Northleaf and accelerating the investment in gigabit capable broadband infrastructure across the North of England and beyond. With Northleaf’s support, we can make a real difference to our rural communities, helping narrow the digital divide whist also creating hundreds of jobs across our region.”

Roderick Gadsby, head of Northleaf’s infrastructure activities in the UK and Europe, said: “We are pleased to have agreed to acquire Quickline as the company is an excellent fit with our communications infrastructure strategy and our broader portfolio of mid-market infrastructure assets in select OECD countries. We look forward to working closely with the management team as they execute the business plan and accelerate the delivery of gigabit capable fixed wireless and FTTP services to underserved rural regions of the UK.”

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