Advised Spectrum Interactive, the UK’s largest independent provider of Wi-Fi services, on its recommended acquisition by Arqiva
Jul 2012
acquired by
  • Sector: Communication & Internet Infrastructure
  • Deal Type: Strategic Deals; Venture Capital Exits
  • Engagement type: Sellside
  • Size: <$200m

Arma Partners is pleased to announce that it acted as exclusive financial adviser to Spectrum Interactive (“Spectrum”) on its recommended acquisition by Arqiva Broadcast Holdings Limited (“Arqiva”).

Arqiva, the communications infrastructure and media services company, has agreed terms with the Board of Spectrum Interactive, a leading UK based Wi-Fi operator, for an offer to acquire 100% of its shares. The transaction will enable Arqiva to accelerate its wholesale business by acquiring the largest remaining independent Wi-Fi provider in the UK.

Demand for mobile data services is forecast to continue to rise by c.65% per annum between 2011 and 2016. Public Wi-Fi has become an important element of the communications infrastructure as a result of this trend.

Arma Partners is the leading advisor to the Wi-Fi sector, having previously advised The Cloud on its sale to BSkyB. This transaction, our eighth since January, demonstrates Arma Partners’ strong deal momentum and leadership in advising companies within the telecommunications services landscape, leveraging Arma’s deep domain expertise, understanding of the buyer universe and first class execution skills.

– Spectrum Interactive is one of the UK’s largest independent Wi-Fi operators

– Spectrum has 15,500 access points in over 2,100 premium Wi-Fi locations in highly populated areas

– Wi-Fi locations include hotels, restaurants and leisure outlets as well as airports, airline lounges, motorway service stations and public locations on high streets

– The business previously was listed on the London Alternative Investment Market

– Arqiva is a specialist in communications infrastructure and media services operating in the broadcast, satellite and mobile communications markets

– Arqiva is at the forefront of network solutions and services in the digital world

– Arqiva provides the infrastructure behind television, radio, satellite and wireless communications in the UK

– Customers include the BBC, ITV, BSkyB, and the UK’s four mobile network operators

– Arqiva views the acquisition of Spectrum Interactive as an opportunity to acquire a substantial and unique portfolio of Wi-Fi sites, payphones, internet kiosks and other interests

– The transaction will enable Arqiva to accelerate the growth of its wholesale mobile data business by acquiring a well regarded and sizeable independent Wi-Fi portfolio

– The acquisition will also enable Arqiva to offer all UK landlords the potential to maximise the value of their assets by attracting multiple customers onto its wholesale mobile data network

– Arma Partners earlier advised The Cloud on their sale to BSkyB. Drawing on Arma Partners’ expertise in the Wi-Fi market, Arma Partners was engaged by Spectrum Interactive to examine strategic options for the business

– Arma Partners conducted a discreet and focused approach with minimum disruption to the business, contacting only the key consolidators across the UK, in addition to a small number of private equity investors

– Arma Partners assisted publicly listed Spectrum Interactive on all aspects relating to navigating the UK Takeover Code during the tender offer for its shares