Fibre broadband provider Zzoomm exploring bid for Trooli - report
Zzoomm, a fibre broadband provider controlled by US investor Oaktree Capital Management, is reportedly exploring a merger with one of its 'altnet' rivals amid growing pressure to consolidate.
According to Sky News, Zzoomm, which has been majority-owned by Oaktree since 2020, is among the bidders for Trooli, which has been put up for sale.
Based in Henley-on-Thames, Zzoomm has connected roughly 100,000 domestic and business premises since its launch.
Sky News cited several telecoms industry sources as saying that it is understood to have made it through to the second round of an auction being conducted by bankers at Lazard.
Last month, Sky revealed that Virgin Media O2 and its shareholders were also exploring a bid for Trooli, which could be worth around £100m.
Virgin Media O2, which is jointly owned by Liberty Global and Spain's Telefonica, is regarded as a leading contender because of its size.
Trooli is exploring a sale amid growing pressure on the deluge of alternative network - or altnet - providers which have sprung up in the last decade as part of efforts to transform Britain's communications infrastructure.
The market is dominated by BT's Openreach division, but also includes large competitors such as CityFibre Holdings.
Trooli is focused on rural and semi-rural postcodes, and has been connecting households to fibre broadband in counties including Berkshire, Dorset and Kent. It has also set a target of 1m premises, which it had said it wanted to reach by the end of next year.