• Arqiva has acquired National Grid Wireless for £2.5 billion
• Creates focused business assured of long-term investment
• Strong, unified business able to more effectively and efficiently deliver Digital Switch Over in the UK

Macquarie UK Broadcast Ventures Limited, the parent company of Arqiva Limited, (together "Arqiva") today announced that it has signed and will complete today the acquisition of the UK National Grid Wireless business for a consideration of £2.5 billion.  National Grid Wireless, which is headquartered in Warwick, England, comprises a national communications infrastructure network that provides broadcast transmission services for BBC television and radio, hosts wireless sites for major mobile network operators, and owns and operates two Freeview digital TV multiplexes.

The transaction brings together the complementary skills and resources of the two businesses and will create a single, strong and efficient organisation that will be better able to support the delivery of all-digital transmission services in the future.  Creating a single broadcast transmission service provider will remove duplicated processes and ensure there is a unified approach to delivering communications infrastructure projects.  This will be particularly important as the process of Digital Switch Over moves forward.

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."

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."

The transaction will be subject to a review by the UK Competition authorities.  During the review process National Grid Wireless will likely be subject to a "Hold Separate" arrangement and will remain a discrete entity.  Business at both companies will continue as normal, with separate management teams and customer contracts.  The review process is expected to last up to 12 months.