Legend Internet to merge with Spectranet to reinforce broadband infrastructure

Legend Internet Plc, a broadband internet service company, has announced a planned merger with Spectranet Limited, a leading Nigerian internet service provider. The deal is expected to be completed by Q2 2026.

According to an announcement filed on Monday on the Nigerian Stock Exchange (NGX), Legend noted that the deal is expected to reinforce its broadband infrastructure and extend its position in the Nigerian telecoms industry. 

“Pursuant to resolutions of the Board of Directors of the Company dated 3 October 2025 and the shareholders dated 7 November 2025, the Company has entered into an agreement with Spectranet in respect of a proposed merger,” part of the statement reads. 

The merger with Spectranet is set on a vision to bring both positive earnings and strengthen the capacity of the fibre and wireless infrastructure. According to the statement, the combination of resources will deliver an “improved operational efficiency, and expand coverage across key urban markets.”

In addition, Legend noted that the merger will bring additional value to both companies, be beneficial to stakeholders and investors and create a competitive edge in the Nigerian broadband internet ecosystem.

“The Transaction is expected to be value accretive to shareholders over the medium to long term,” it said. 

While the deal is set to be finalised between April and June, it remains subject to regulatory approval by the Federal Competition and Consumer Protection Commission (FCCPC) and the Nigerian Communications Commission (NCC).

Legend noted that more information on operational set-up and other strategic developments will be communicated in due time. However, the businesses and operations of both entities will be combined under a unified corporate structure. 

Also Read: NCC grants license to 7 new ISPs to operate in Nigeria, now 231 in total.

Legend X Spectranet: Why the merger?

The proposed merger comes at a time when competition is heating up in the Nigerian Broadband internet industry. It also comes amid expected competition from new emerging players such as MTN FibreX and cell-to-phone satellite networks.

Meanwhile, Legend Internet and Spectranet’s planned merger is an attempt to rescue two companies faced with recent struggles in revenue and capacity, respectively.

In its recent earnings report, Legend posted a net loss of N14.8 million for the quarter ended Oct. 31, 2025, compared with a profit of N94.5 million for the same period in 2024. Its revenue also dropped by 17% to N258.3 million from N309.7 million, attributed to a drop in Legend Fibre sales, its core business line.

Operating performance also saw a loss of N20.9 million before interest and tax, compared to a N95.4 million profit in the prior period. 

The company was clear in its expectations on the merger with Spectranet, with a focus on improved earnings and establishing a strong hold. 

“The Board believes the Transaction will create sustainable long-term value for shareholders by strengthening the Company’s competitive position, supporting revenue growth, and improving earnings capacity through operational synergies and increased scale,” the statement reads.

For Spectranet, the merger will help reinforce its position in a market where it’s gradually losing its leading position.

As of Q2 2025, Spectranet’s active customers stood at 99,520, a decline from the 103,252 customers it recorded in Q1 2025, marking a second consecutive quarter of decline. Industry experts projected that the company may soon lose the leading position to Elon Musk’s Starlink, which is closing in at 66,523.

Aside from growing competition, internet service providers (ISPs) have faced market bottlenecks, including high bandwidth prices, high costs of right-of-way, licence renewals, and spectrum costs. Also, the launch of 5G by MTN and Airtel is another threat factor.

With their planned merger, Legend and Spectranet will look to make a strong statement and build a leading force in the industry. 

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