PRESS: Possible Gamma bidder Providence eyes buying stake in rival SCG

Fri, 22nd May 2026 12:28

(Alliance News) - A potential suitor for Gamma Communications PLC is looking at buying a stake in another of the UK's leading business telecoms providers, Sky News reported on Friday.

Sky said Rhode Island, US-based private equity firm Providence Equity Partners LLC is in exclusive talks to acquire a shareholding in Southern Communications Group after rival bidder ICG PLC ended discussions about a deal.

Sky sources said a deal would value the Basingstoke, Hampshire-based company at more than GBP600 million.

SCG is focused on the UK small and medium-sized business sector, and has a particular strength in the healthcare industry, where it supplies communications software to a sizeable chunk of GP surgeries.

ICG had been in talks to buy roughly 40% of SCG as part of a broader recapitalisation, although it was unclear whether Providence's discussions were about a similar-sized stake, Sky said.

News of Providence's interest comes amid a possible bidding war for Newbury, Berkshire-based provider of cloud communications and voice services, Gamma.

Gamma has so far said it is holding "preliminary" talks with Epiris LLP, a consortium comprising Oakley Capital and Giacom, plus Providence.

Under UK takeover rules, Providence has until June 10 to make a firm takeover proposal for Gamma. The deadline for London-based PE firm Epiris and the Oakley/Giacom consortium is two days later, June 12. Sky's report said that an informal deadline for bids has been set for today.

Oakley is a London-based PE firm while Giacom is a London-based IT service provider.

In London, Gamma traded 0.3% higher at 977.00 pence each while ICG was down 0.9% at 1,869.00p.

By Jeremy Cutler, Alliance News reporter

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