Arqiva, owned by Australia’s Macquarie Bank, has bought National Grid Wireless (NGW) for £2.5 billion ($4.9 billion).
Last week, NGW submitted a bid for the second national digital multiplex in a partnership with the BBC and Digital One.
Arqiva already operates the existing national digital radio multiplex, Digital One, alongside GCap Media.
Tom Bennie, Arqiva’s chief executive officer, said: “We firmly believe that combining Arqiva and National Grid Wireless will result in a stronger entity which is better positioned to serve the needs of the UK’s broadcast and mobile communications industries in the future.
“We will be able to deliver large-scale projects of national importance, such as digital switchover, much more effectively and efficiently. This will also enhance our prospects in the mobile outsourcing market.
“Having a single broadcast transmission service provider brings the UK into line with most of the rest of the world. The UK’s terrestrial broadcast transmission network will be in a much better position to ensure that terrestrial broadcasting remains a powerful and innovative service in the future.”
Edward Astle, National Grid’s executive director for non-regulated business, added: “The sale of National Grid Wireless to Arqiva represents the most attractive outcome for our shareholders and offers a good future for the business.
“Combined with Arqiva, the business will remain at the centre of digital broadcasting during digital switchover and play a key role as wireless and broadcasting services converge.”
The transaction will be subject to a review by the UK Competition authorities, with the review process is expected to last up to 12 months.
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