DigitalBridge moves to divest its holding in Netomnia as part of its strategic portfolio optimization.
DigitalBridge, a global alternative asset manager focused on digital infrastructure, has announced a significant development in the European fibre broadband market. The company revealed that one of its investment funds, together with fellow shareholders Advencap and Soho Square Capital, has entered into a definitive agreement to sell Substantial Group, the parent company of UK-based wholesale full-fibre operator Netomnia. The deal marks an important milestone for all parties involved and underscores the rapid evolution of the United Kingdom’s full-fibre broadband landscape.
The transaction will see Netomnia acquired by nexfibre in a deal valued at an enterprise value of £2 billion. While the sale remains subject to customary regulatory approvals and other closing conditions, the agreement represents a major step in consolidating the UK’s alternative network, or “altnet,” sector. It also highlights the continued interest from investors and infrastructure operators in high-capacity fibre networks that support the growing demand for digital connectivity.
A Strategic Exit for DigitalBridge
DigitalBridge’s involvement with Netomnia dates back to 2022, when the firm invested in the company to help accelerate the expansion of its fibre network and strengthen its operational capabilities. At the time, Netomnia was already pursuing an ambitious build-out strategy to deliver high-speed full-fibre connectivity to underserved and competitively priced markets across the UK.
Under DigitalBridge’s ownership and strategic guidance, Netomnia expanded rapidly. Since its founding in 2019, the company has grown its footprint to cover more than 3 million premises and approximately 460,000 customers across the country. This growth has positioned Netomnia as the UK’s fourth-largest full-fibre network operator, a notable achievement in a market dominated by major incumbents and heavily capitalized competitors.
Marc Ganzi, Chief Executive Officer of DigitalBridge, emphasized the firm’s role in helping the company scale its operations. He noted that the partnership with Netomnia’s management team was instrumental in building a significant full-fibre platform that serves communities across the UK. According to Ganzi, the company’s network expansion and strengthened market presence reflect the successful collaboration between DigitalBridge and Netomnia’s leadership.
He also indicated that the agreement to sell the company provides a clear path forward, enabling the business to continue its development under new ownership while allowing DigitalBridge and its partners to realize value from their investment.
Netomnia’s Growth Story
Netomnia was founded with a clear objective: to build a capital-efficient, high-quality full-fibre network capable of delivering gigabit-capable broadband to homes and businesses across the UK. At the time of its launch in 2019, much of the country’s broadband infrastructure still relied on legacy copper networks, limiting speeds and reliability for many users.
The company set out to address this gap by deploying fibre-to-the-premises (FTTP) infrastructure, which offers significantly faster speeds, lower latency, and greater reliability than older technologies. Backed by more than £1.6 billion in funding, Netomnia pursued an aggressive rollout strategy, targeting a mix of urban, suburban, and smaller regional markets.
This approach allowed the company to scale rapidly while maintaining a focus on capital efficiency. By optimizing build costs and deployment timelines, Netomnia was able to extend its network to millions of premises within just a few years. The company also developed a wholesale business model, enabling internet service providers to deliver retail broadband services over its infrastructure.
Jeremy Chelot, Group Chief Executive Officer of Netomnia, credited the company’s shareholders, including DigitalBridge, with supporting its growth strategy. He noted that their backing allowed Netomnia to build a scaled full-fibre platform serving more than three million premises across the UK. According to Chelot, the partnership with DigitalBridge played a crucial role in expanding the network and strengthening operations.
The planned acquisition by nexfibre, he added, marks an important milestone for the business and provides a pathway for its continued development.
The Role of nexfibre
The buyer in the transaction, nexfibre, is an infrastructure platform focused on expanding full-fibre connectivity across the UK. The acquisition of Netomnia is expected to accelerate nexfibre’s growth plans and enhance its ability to invest in advanced broadband infrastructure.
By combining Netomnia’s existing network footprint with its own deployment plans, nexfibre aims to create a larger and more competitive fibre platform. The transaction is expected to support continued investment in full-fibre infrastructure, helping to improve connectivity and digital access for homes and businesses across the country.
The £2 billion enterprise value attached to the deal reflects the strong demand for high-quality fibre assets, as well as the strategic importance of digital infrastructure in modern economies. Fibre networks are widely viewed as critical enablers of economic growth, remote work, cloud computing, streaming services, and emerging technologies such as artificial intelligence and the Internet of Things.
The UK’s Full-Fibre Market
The United Kingdom has undergone a major transformation in its broadband infrastructure over the past decade. Historically reliant on copper-based networks, the country lagged behind some European peers in terms of full-fibre coverage. However, a wave of investment from both incumbent telecom operators and alternative network providers has accelerated the transition to fibre.
Companies like Netomnia have played a key role in this transformation. As part of the “altnet” movement, these operators have focused on building new fibre networks, often targeting areas that were underserved or lacked competitive options. Their efforts have contributed to increased competition, improved service quality, and more affordable broadband offerings for consumers.
The consolidation seen in transactions such as the sale of Netomnia reflects the next phase of the market’s evolution. As networks mature and competition intensifies, many altnets are seeking strategic partnerships, mergers, or acquisitions to achieve greater scale and financial stability.
DigitalBridge’s Infrastructure Focus
For DigitalBridge, the sale of Netomnia represents another step in its strategy of investing in and scaling digital infrastructure platforms. The firm has a heritage of more than 30 years in the sector, with investments spanning cell towers, data centers, fibre networks, small cells, and edge computing infrastructure.
DigitalBridge currently manages approximately $108 billion in infrastructure assets on behalf of its limited partners and shareholders. Headquartered in Boca Raton, Florida, the firm operates globally, with offices across North America, Europe, the Middle East, and Asia.
Its investment philosophy centers on identifying high-growth digital infrastructure opportunities, providing capital and strategic support to help companies scale, and ultimately realizing value through exits such as public listings or strategic sales.
The Netomnia transaction fits squarely within this approach. By investing in the company during a key growth phase and supporting its network expansion, DigitalBridge and its co-investors were able to help create a scaled fibre platform attractive to a strategic buyer.
What the Deal Means for the Future
If approved, the acquisition of Netomnia by nexfibre is expected to strengthen the UK’s fibre infrastructure landscape. The combined platform could accelerate deployment, enhance service quality, and increase competition in the broadband market.
For consumers and businesses, this could translate into faster internet speeds, more reliable connections, and greater choice among service providers. For investors, the deal underscores the continued attractiveness of digital infrastructure assets, particularly fibre networks that support the ever-growing demand for high-speed connectivity.
For DigitalBridge, the transaction represents a successful investment cycle—entering the company during a period of expansion, supporting its growth, and exiting through a strategic sale.
Closing Outlook
While the transaction still requires regulatory approvals and the fulfillment of customary closing conditions, the agreement signals confidence in the long-term prospects of full-fibre infrastructure in the UK. It also highlights the role of private capital in building and scaling essential digital networks.
As demand for high-capacity connectivity continues to rise, investments in fibre infrastructure are expected to remain a central theme in the global digital economy. The sale of Netomnia to nexfibre is another example of how strategic partnerships and consolidation are shaping the future of broadband infrastructure in the UK and beyond.
