Following the fibre sector’s worst-ever year for investment in 2024, Acuity Advisors predicts mergers in the next two years.
Its latest report found that 2024 saw the lowest amount of debt and equity raised as well as the lowest number of M&A transactions in its review period.
It highlights debt deals in the second half of the year, predominantly from the National Wealth Fund, and claims that this is representative of debt markets becoming accessible to altnets once more.
“That dynamic will, we believe, spur on a phase of investor-led consolidation throughout 2025 and 2026,” reads the report.
“All-paper mergers will be used to create differentiated platforms of scale. These platforms will then be able to access funding enabling them to re-start their organic growth and consider acquiring competitors for cash.”
