Zzoomm is currently in discussions about a potential merger with Freedom Fibre, in a deal that would create a new company worth around £500m.
Amid growing financial pressure on the industry to consolidate, the independent fibre broadband networks have been holding talks about the merger, which has progressed to the detailed stage, but there is no certainty that an agreement may be reached.
Freedom Fibre, which is backed by the infrastructure investor Basalt, is one of a potential group of merger partners considered by Zzoomm.
The altnet provider is being advised by Acuity Advisors, a technology-based firm, and confirmed that it was in negotiations with "numerous" parties but declined to comment specifically on Freedom Fibre.
Matthew Hare, CEO, said that the company has been open about its desire to participate in industry consolidation: “An enlarged group, based around our established operational and effectiveness and technical infrastructure, would benefit from the economies of scale," he said in June.
