European carrier Alpha Telecom has been acquired by Fusion, the communications incubator, following Alpha's announcement that it had gone into receivership.
Alpha, which operates in the UK and parts of Europe, announced the receivership yesterday and said that it had outstanding debts of over £20m owed to creditors and a number of other telecoms carriers.
The company, which had a turnover last year of over £100m, sold pre-paid phonecards and services including post-paid business facilities. It had been planning a £200m flotation, but according to a report in the Financial Times this week, the company is understood to have run out of money after a change in its strategy.
The report quoted Deloitte & Touche, Alpha's receivers, as saying that the telco tried to enter the market for standard telephone services, but did not have a debt collection provision in place nor the additional necessary working capital.
Fusion's acquisition of Alpha will be funded by US investors The Chiltern Group and Worldcom, which will carry Alpha's traffic. In May, Fusion announced its Onesea project to provide the first multi-terabit capacity network connecting Europe, North Africa and the Middle East.
Andy Middleton, former UK managing director at Alpha, and now working at Fusion, said: "The acquisition by Fusion will allow Alpha customers access to a broader range of services in the UK and Europe. We will continue to support their telephony needs and continue to be more price competitive than any of the other players in the market."
Fusion said it plans to provide access to services such as ADSL and broadband mobile telephony to Alpha's customers.
Latest Tesla news: Tesla share price continues to fall after Saudi Arabia's sovereign wealth fund is linked to investment in rival
SEC 'probe' takes its toll on Tesla as new research suggests that Tesla loses $6,000 on every $35,000 Model 3
RTX 280 Ti will come with 11GB of fast GDDR6 video RAM with a 352-bit memory bus offering 616Gbps
The scale of jobs lost to automation will be at least as large as those in the first three industrial revolutions
10nm Cannon Lake Core i3-8121U CPUs make a rare outing with Intel's NUC mini PC