FEBRUARY 7, 2008 -- Optical fibre network provider Geo today announced that it has been sold by the Hutchison Whampoa Group to the Alchemy Investment Plan in a deal worth £ 62 million.
Geo owns a 2,500-km optical fibre network across the UK, which is adjacent to the main gas pipeline. It also owns an 80-km fibre network built deep underground in Thames Water's sewer network in London. The company says it uses these assets to design and build bespoke data networks for some of the UK's largest organizations, including Carphone Warehouse, Tiscali, and 3UK.
Recently, it has been selected by the Welsh Assembly Government to build and operate the new FibreSpeed network to deliver high-speed communication services in North Wales, the first phase of which will see a £ 30 million investment over the next 15 years.
"We are delighted the acquisition of Geo has completed," contends Jon Moulton, managing partner of Alchemy Partners LLP. "The company's innovative business model, high-quality bespoke services and excellent track record provide it with a unique position in a sector full of "me too" operators. We look forward to working with Geo's experienced management team to continue the growth of this exciting young company," he says.
"This deal is an important landmark in Geo's evolution into the UK's foremost provider of dedicated fibre data networks," adds Chris Smedley, Geo's chief executive. "The confidence shown by a leading investor such as Alchemy in Geo's proposition to its customers and the market opportunity is significant, and I am delighted to have them as our shareholder and partner for the next stage in the company's rapid growth."