Arqiva pays £2.5bn for NGW

Macquarie UK, the parent company of Arqiva, has announced the company's acquisition of National Grid Wireless for £2.5 billion.

Based in Warwick, National Grid provides broadcast transmission services for BBC television and radio, hosts wireless sites for mobile network operators, and owns and operates two Freeview digital TV multiplexes.

Arqiva is the other main transmitter and broadcast company in the UK. Formerly owned by NTL as NTL Broadcast it was sold to a consortium led by Macquarie Bank in 2004.

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 switch over, 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," he added.

Though complete, the transaction will be subject to a review by the UK Competition authorities. During a 12-month review process both companies will continue as normal, with separate management teams and customer contracts.

Edward Astle, National Grid's executive director for Non-Regulated Business, said: "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 switch over and play a key role as wireless and broadcasting services converge."