Provider of broadband to rural areas Voneus has increased its customer base to almost 50 rural communities with the acquisition of SugarNet, which operates in Oxfordshire, Northamptonshire, Warwickshire and the Gower Peninsula.
Both companies provide fixed wireless broadband services to locations with no access the high speed broadband services offered by traditional network providers.
The acquisition expands Voneus's network footprint to potentially connect an additional 2,000 homes and businesses within reach of SugarNet's existing infrastructure.
SugarNet's employees will be retained at their current premises near Banbury.
The deal follows Voneus' acquisition of Cotswold Wireless last October and leverages the £5.3m funding secured by Voneus in June 2017.
"SugarNet and Voneus have always had similar missions - to bring superfast broadband services to those UK communities that fall outside the reach of today's fixed networks and are left frustrated by poor Internet speeds," said Steve Leighton, CEO of Voneus.
"By joining forces we are in an even greater position to develop new services and bring more communities into the high speed digital age."
SugarNet owner and MD Oliver Helm added: "The additional resources and manpower that come from being part of Voneus means we can deliver more services to existing customers, provide enhanced customer support and cut the time it takes to bring new customers online."
Voneus's network now spans villages in Bedfordshire, Buckinghamshire, Cheshire, Devon, Gloucestershire, Oxfordshire, Somerset, south Wales, Staffordshire, Warwickshire, Northamptonshire and Wiltshire.