JT Group (Jersey Telecom) and CVC Capital's infrastructure arm, CVC DIF, have signed an agreement to acquire Isle of Man telco Manx Telecom Group.

The announcement last week is set to create the largest crown dependencies telecoms provider.

It comes months after reports emerged that a potential deal was being explored. Financial terms weren't revealed last week, though reports in June suggested the deal could be worth £500 million ($667m).

Combined, JT Group and Manx Telecom will serve customers in Jersey, Guernsey, both of which are located in the Channel Islands, and the Isle of Man. All three are self-governing British Crown dependencies.

JT Group noted that, through its partnership with CVC DIF, the deal will bring additional capital to the company to support its long-term growth ambitions.

“Alongside our strategic partner in CVC DIF, this marks a major step forward for JT and Manx Telecom. With the deep sector expertise, we’re building a powerful platform for innovation and investment – one that is rooted in supporting our local economies and communities and built to compete and grow globally," said Daragh McDermott, CEO of JT Group.

“Our investment in Manx Telecom Group reflects our conviction in the long-term value of resilient, locally rooted digital infrastructure. As the Isle of Man’s incumbent operator, Manx Telecom Group offers a strong platform for innovation and growth, and we are excited to support its next phase of development," added Tom Goossens, partner and co-head of the DIF Infrastructure fund strategy at CVC DIF. "The partnership with JT Group further builds on this foundation, enabling us to scale operational capabilities across the Crown Dependencies and beyond. Together, we aim to accelerate investment in next-generation networks and deliver enhanced connectivity and enterprise services to customers.”

Founded by BT in 1985, Manx Telecom is the primary provider of broadband and telecommunications on the Isle of Man. After being acquired by Telefónica in 2006, HgCapital in 2010, and floating in 2014, Manx Telecom has been owned by Basalt Infrastructure Partners since 2019.

The company launched its own dedicated data center division last year. Manx is currently building out its fiber network £60m ($80m) roll-out.

JT was founded in 1888 and is owned by the island's government. The telco paired with network vendor Ericsson to launch 5G last month.