Business UK ISP Gamma Confirms £1bn Takeover Talks with Waterland

Business ISP and IT provider Gamma Communications has confirmed that Waterland Private Equity Investments is “amongst the parties in discussions” with the telecoms provider regarding a possible £1bn takeover offer for the business. The Giacom Group, which is run by industry entrepreneur Matthew Riley and backed by Inflexion, would then acquire “certain business divisions” of Gamma.

According to the latest data from the London Stock Exchange (LSE), Gamma Communications plc (GAMA.L) currently has a market capitalisation of approximately £864.60 million, although other estimates tend to fluctuate up to around £965 million and competition for the business could push above this level.

Regular readers will recall that the battle for control of Gamma has been going on for months now, with Matthew Riley’s Giacom frequently being linked to a deal as part of different approaches for the provider, such as via Oakley Capital and Providence Equity Partners (here and here). Private equity firm Epiris, which was recently linked to separate talks for TalkTalk’s wholesale business (PXC), is also understood to still be engaged in talks with Gamma.

The Takeover Panel is understood to have given both Epiris and Waterland until 2nd and 18th September 2026, respectively, to lodge a formal offer or lose their chance to bid again for several months.

Gamma’s Market Statement

The Board of Gamma notes the recent press speculation and confirms that Waterland Private Equity Investments B.V. (“Waterland”) is amongst the parties in discussions with the Company regarding a possible offer for the entire issued and to be issued share capital of Gamma. These discussions remain at a preliminary stage. The Giacom Group (“Giacom”) is acting in concert with Waterland in connection with the possible acquisition, whereby Giacom will acquire certain business divisions of Gamma.

Discussions between the Company and other potential offerors remain ongoing. There can be no certainty that any offer will be made for the Company nor as to the terms of any offer, if made.

In accordance with Rule 2.6(a) of the Code, Waterland must, by not later than 5.00 pm (London time) on 18 September 2026, being 28 days after today’s date, either announce a firm intention to make an offer for Gamma under Rule 2.7 of the Code or announce that it does not intend to make an offer for Gamma, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. This deadline will only be extended with the consent of the Panel on Takeovers and Mergers in accordance with Rule 2.6(c) of the Code.

As previously announced, the Executive of the Panel on Takeovers and Mergers has granted a dispensation from the requirements of Rules 2.4(a) and 2.4(b) of the Code such that Gamma is not required to identify in this announcement any potential offeror with which the Company is in talks, or from which an approach has been received, unless that potential offeror is specifically identified in any rumour or speculation. A further announcement will be made if and when appropriate.

The individual responsible for arranging the release of this announcement on behalf of Gamma is Rachael Matzopoulos, Company Secretary.

The news comes a year after Gamma signed a 6-year commitment with B2B telecoms company O2 Business, which extended an existing agreement and expanded it to reflect the recent merger between VMO2 Business (Virgin Media and O2) and Daisy Group (full details). A 7-year wholesale revenue agreement is included in that. The deal also included the transition Gamma’s UK SME direct customer base to O2Business, with Gamma’s remaining UK direct sales channels consisting of digital channels and providing solutions to enterprise customers.