A BELLSHILL company that operates 2,000 communications towers across the UK has secured a £75 million investment from a FTSE 250 infrastructure investor to fund ‘substantial’ expansion.
Wireless Investment Group (WIG), which employs 50 staff, said the investment from 3i Infrastructure would help it scale up its UK footprint and expand in Western Europe.
The company plans to invest up to £1 billion in new towers and fibre-based telecoms networks that would improve mobile coverage across rural areas, the UK’s rail network and large buildings and streets in cities. WIG built the shared 4G network used by Glasgow’s Braehead Shopping Centre and will be connecting antennae to lampposts in Aberdeen after being appointed the city’s wireless infrastructure partner.
“We’ve been building this business now for nine to ten years from Strathclyde Business Park and we are ready to scale up now,” said WIG chief executive Scott Coates. “This investment helps us do that, so it’s really exciting.”
3i Infrastructure, a listed Jersey-based investment company that makes long-term investments in infrastructure businesses, is taking a 36 per cent stake in WIG, valuing the business around £300m.
Originally set up in 2006, WIG was bought out in 2013 by its management and Wood Creek Capital Management, a Connecticut-based investment manager that invests in assets from telecoms and transport infrastructure to intellectual property in the film and television industry.
“The reason we’ve done this deal is to broaden our investor base so that when opportunities come along, it strengthens our execution of them,” Mr Coates added. “We’ve been backed by Bank of Scotland since launch and last year also added Axa into our banking group, so we’ve now got strength and depth in our banking relationships and strength and depth in our equity partners.”
The company, which also operates 100 towers across Netherlands and Ireland, said 3i’s backing would help it expand in the UK and Europe by building new infrastructure and buying and upgrading communication towers owned by mobile operators.
About two thirds of the UK’s communication towers are controlled by mobile network operators including Vodafone, o2, EE and Three. This contrasts with the US and global markets, where more than 80 per cent and 60 per cent of towers respectively are independently operated.
WIG stresses that is not linked to any network operator and that its masts and networks can be accessed by any mobile operator and more than 100 different wireless networks on a non-discriminatory basis.
"The case for independent ownership of upstream broadband infrastructure such as masts and fibre is an increasingly compelling one,” Mr Coates continued. “In the mobile sector, independently operated infrastructure enables better connectivity, attracts new sources of investment and promotes infrastructure competition in a consolidating telecoms market."
Ben Loomes, managing partner and co-head of infrastructure at 3i Investments said: "We are delighted to be backing an industry leading platform at a pivotal time for the European independent tower sector. We have been impressed by the company's focus on high quality shared infrastructure and its experienced management team. We look forward to supporting the company's plans to expand its infrastructure base both here in the UK and elsewhere in Europe".
Matt Sandoval, managing director of Wood Creek Capital Management, said: "We look forward to working alongside management and 3i Infrastructure to continue our support of the company as it builds new infrastructure and plays a leading role in sector mergers and acquisitions across Europe."
WIG also has offices in Solihull, Basingstoke and the Netherlands.
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