Collapsed altnet Broadway eyes rebirth with sale to Macquarie and Tiger

The first “altnet” fibre broadband infrastructure provider to collapse into insolvency is close to being rescued by a pair of powerful global investors.

Sky News has learnt that a consortium comprising Tiger Infrastructure Partners and Macquarie, the Australian banking giant, is close to acquiring Broadway Partners out of administration.

An infrastructure industry insider said they expected a deal to be struck as soon as this week.

If completed, it would be the first co-investment in a British altnet provider undertaken by Macquarie and Tiger.

Macquarie, which has ploughed billions of pounds into UK airports, energy transmission and other infrastructure assets, already owns a stake in Voneus, a specialist in fixed wireless access technology.

Tiger is a backer of Rural Broadband Solutions Holdings, which operates under the brand SWS Broadband.

The acquisition of Broadway is expected to be structured as a takeover by Voneus, with the 40 remaining jobs at Broadway being saved.

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Focused on rural areas in Scotland and Wales, Broadway called in administrators from Teneo Financial Advisory in May amid growing financial strains on the industry.

One source said the sale would demonstrate the efficacy of an administration process to keep altnets trading while seeking the stability of new investors.

Launched in 2016, Broadway saw its balance sheet hit by soaring costs and rising interest rates.

The company had set an ambitious target of connecting 250,000 homes and businesses by 2025.

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Broadway’s collapse came two years after it announced a funding package from Downing LLP, an investment firm which committed £145m to the altnet.

At the time, Broadway said its mission was to “deliver affordable, high-speed broadband services to the more remote regions of the UK, particularly Wales and Scotland where there is a notable digital divide in countryside locations”.

It added that it had already connected thousands of premises in locations including Arran, Ayrshire, Perth & Kinross, Monmouthshire and Pembrokeshire.

Other fibre network builders which have sought new investment or buyers in recent months include Trooli, another mid-sized entrant.

The market is dominated by BT’s Openreach division, but also includes large competitors such as CityFibre Holdings.

Virgin Media 02 is also a big emerging player in the industry’s rush for scale.

The pressure for consolidation has grown as costs have soared, while supply chain and labour issues have also conspired to impair altnets’ path to profitability.

Macquarie and Teneo both declined to comment.

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