The Manchester-based internet service provider will use the funds to build fibre networks in the North and Midlands, as well as to deliver ultrafast fibre connectivity to commercial and residential properties throughout the country.
The £63m comes from asset manager Gresham House’s £340m British Strategic Investment Fund. The close-ended fund takes a long-term view on investing in sustainable infrastructure and housing sectors.
Telcom Group aims to provide ultrafast and reliable fibre connectivity to commercial and residential properties throughout the country. It is divided up into three brands: Telecom, ClearFibre, and WeFibre. Telcom provides internet for commercial properties, while ClearFibre does the same for residential. WeFibre offers low-cost internet for social housing and rural housing. In addition to being a provider, Telcom also owns full-fibre infrastructure.
“Telcom’s ‘full-stack’ approach is highly differentiated, as it offers customers a genuinely bespoke, technology-driven broadband service,” said Peter Bachmann, managing director of sustainable infrastructure at Gresham House. “As Telcom looks to expand its coverage, this should appeal to the many British businesses relying on good connectivity to operate efficiently.
“Given its urban and multiple-dwelling unit focus, the addition of Telcom to the Gresham House family of broadband providers also complements our investments in rural broadband providers and contributes to our wider push for greater digital inclusion across the UK,” Bachmann continued. “Reliable high-speed broadband infrastructure is necessary to power the British economy and enable increased social inclusion – through remote learning and working, and telehealth.”
The BSIF money is coming at just the right time, according to Telcom co-founder and chief executive Shaun Gibson.
“The Gresham House investment comes after a period of hard work by the management team and board in structuring the company for a period of high-level sustained growth,” he said. “This is a tremendously exciting time for Telcom employees and shareholders, as we continue building our great company for the long term and obsessing over our customers.”
Telcom Group was advised by corporate finance firm Oakley Advisory and law firm Gunnercooke on the deal. Finance and tax consultancy RSM UK, law firm Shoosmiths, and management consultancy Analysys Mason advised Gresham House.