Arqiva, the communications infrastructure and media services company, announced yesterday (2 July 2012) that it has agreed terms with Spectrum Interactive, a leading UK based Wi-Fi operator, for an offer to acquire 100% of the shares for total cash consideration of £23.4 million.
Arqiva said the deal will enable it to accelerate its wholesale mobile data business by acquiring a well regarded and sizeable independent Wi-Fi portfolio, providing a highly scalable platform across the market.
Growth in smartphones and mobile enabled devices along with faster download speeds has led to a significant increase in the demand for mobile data services: this demand is forecast to continue to rise yearly by c.65% per annum between 2011 and 2016.
It is intended that all employees of Spectrum Interactive will join Arqiva.
John Cresswell, CEO, Arqiva commenting on the Offer said: ‘The acquisition of Spectrum Interactive positions Arqiva as one of the UK’s largest Wi-Fi hotspot providers and uniquely we would be the only wholesale provider with no associated retail service. We are well placed to help define the Wi-Fi space for all UK landlords and business providers, allowing us to individually tailor services for our customers to meet the growing demand for data capacity.’
Nicolas Ott, Managing Director, Government, Mobile and Enterprise, Arqiva commenting on the Offer said: ‘The strategic fit of Spectrum with Arqiva is compelling and our customers and business will benefit from the 15,500 access points in over 2,100 premium Wi-Fi locations across hotels, restaurants and leisure outlets as well as airports, airline lounges, motorway service station and public locations on high streets. We can accelerate the roll out of Arqiva’s wholesale mobile data offer, whilst enhancing services provided to Spectrum Interactive’s customers. ‘
Simon Alberga, Executive Chairman, Spectrum Interactive, said: ‘Spectrum Interactive is a solid business built by our investors, executives and employees, and as an independent player we have created a truly relevant market proposition. Our customers and business will continue to be well served by this acquisition, and Arqiva’s acquisition of Spectrum Interactive will ensure that our organisation will continue to lead and flourish in what is a highly innovative and competitive market.
‘The Board believes this is an attractive offer for Spectrum Interactive shareholders and the transaction is in the best interest of all stakeholders in Spectrum Interactive. Accordingly, the Board unanimously recommends to shareholders the acquisition of Spectrum Interactive by Arqiva.’