Literacy Capital Sells Wireless UK Internet Provider Wifinity to Arcus

Literacy Capital (BOOK) has announced that it has sold its stake in Managed Internet Service Provider Wifinity, which typically specialises in deploying WiFi style broadband networks to UK businesses and consumers, to European-focused infrastructure fund Arcus Infrastructure Partners. Under the terms, £15m will be received in cash at completion, with a further £400k expected around the end of 2026.

All of this follows Wifinity’s LDC (Lloyds Development Capital)-backed management buyout in September 2021, which has since seen the business scale its capabilities through various acquisitions and other changes. Wifinity was also one of Literacy Capital’s earliest investments, with the Fund originally acquiring a stake in December 2017.

As at 30th September 2025, Wifinity was one of the Fund’s ten largest holdings and this transaction will see the Fund sell its entire stake in line with the previously reported carrying value. The total return for BOOK shareholders from this investment, including cash distributions previously received and the contingent consideration (expected to be received within 12 months) is 5.2x Multiple of Money (Internal Rate of Return of 22.3%).

Richard Pindar, CEO of BOOK’s Investment Manager, said:

“The sale of Wifinity marks a significant milestone, both for Wifinity and Literacy Capital, with the business having been a longstanding and successful holding for the Fund.

We are grateful to the CEO, Costas Demetriou, for his excellent leadership and development of the business since joining following our original investment in December 2017, and for his role in helping to achieve this successful outcome and exit.

This transaction represents another notable realisation event for BOOK. Again, the counterparty or buyer is a substantial institutional investor, demonstrating the marked enhancement of Wifinity’s attractiveness to larger investors since Literacy Capital’s original investment eight years ago.

As has been widely discussed, M&A conditions were difficult during 2025, resulting in many transactions being delayed or cancelled. Despite this, we are pleased to be able to announce this sale and hope to announce further successful realisation events soon.

Our priority remains generating cash proceeds from longer held, more mature assets to focus capital and management bandwidth on less mature holdings that have significant potential.”

The signing and exchange of the deal has already taken place, with regulatory clearance and completion expected during the first quarter of 2026. The cash received by BOOK following completion will be used to repay amounts drawn under its Revolving Credit Facility (RCF).

Wifinity itself typically delivers more bespoke style connectivity solutions to people where ordinary broadband often doesn’t reach, including rural and remote locations such as military bases and holiday parks. The company also provides services to other multi-tenanted environments such as later living communities, education environments, Public Sector buildings, as well as Enterprise broadband and connectivity.