Gamma Communications has entered early-stage discussions with Waterland Private Equity Investments over a potential takeover of the UK telecoms services provider, adding another private equity bidder to the company’s strategic review, according to a report by Reuters.
Gamma said on Friday that talks with Waterland were ongoing but cautioned that there was no certainty an offer would ultimately be made.
The news sent Gamma’s shares up about 7.3% to £10.40, their highest level since September 2025. The company had a market capitalisation of approximately £863 million at the previous close.
Waterland has until 18 September to announce whether it intends to make a firm offer under UK takeover rules.
The potential transaction could involve a carve-out of parts of Gamma’s business. According to Sky News, Waterland is considering a bid that would see IT services provider Giacom acquire certain operations from Gamma. Gamma confirmed that Giacom is acting in concert with Waterland in relation to the potential transaction.
Waterland is not the only sponsor considering an acquisition of Gamma.
The company is also in discussions with Epiris, which faces a 2 September deadline to either make a formal offer or withdraw from the process.
Oakley Capital and Providence Equity Partners ended their respective approaches in June, while Gamma said discussions with other potential bidders were continuing.
The interest comes amid renewed private equity appetite for UK-listed companies, with relatively subdued equity valuations making some businesses more attractive to financial sponsors seeking take-private opportunities.
Gamma provides communications services to businesses in the UK and operates across areas including cloud communications, unified communications and connectivity.
