In a statement, Imagine confirmed that Team Group will purchase a “majority stake” in the provider marking its first investment in an EU country. The deal will also see a new chief executive appointed to the provider with Niall Tallon picked to lead a new management team at Imagine.

Mr Tallon said the National Broadband Plan, supported by the Irish Government, has had a “massive impact on the Irish broadband landscape” and the “shift towards fibre technology has been transformative, particularly in rural Ireland”.

“This investment by Team Group will finance our five-year strategic plan and enable us to pivot faster to fibre, enhancing service stability and quality for customers.” 

Mr Tallon said they are already working to expand the company’s reach and offer faster broadband solutions across the country.

This new investment means existing Imagine shareholder, US investment firm Brookfield, will now be a minority shareholder. Brookfield intends to partner with Team Group and the management team to support Imagine’s growth.

It said Imagine had worked closely and constructively with its bank lenders, led by Dutch bank ING, to ensure a long-term sustainable solution.

Hayk and Alexander Yesayan said this investment was a milestone for their company adding that it is their “first step in our ambition to expand into the European market”.

“By leveraging innovative technologies and collaborating with infrastructure partners we can provide the very best broadband speeds and services for Imagine’s customers and communities.”

As the roll-out of the National Broadband Plan gathered pace, Imagine has struggled to compete in the market. During its 2023 financial year, Imagine posted a near €50m loss as it was forced to scale back its growth plans.

The company posted turnover of just under €32.6m during 2023 with a gross profit of €16.4m. Its earnings before various deductions came to €3.6m.

The company’s reported loss came from its decision to “impair the value of the fixed assets and investment in subsidiaries” due to the increasingly challenging market environment. This resulted in a writedown in the company’s accounts of €32.7m.

The company was forced to take a number of measures in order to maintain its earnings this year. This included a restructuring and redundancy programme which concluded at the end of March resulting in significant reduction in payroll costs, a significant reduction in selling, general, and administrative expenses, as well as a price increase in line with other operators.

Imagine currently has over 40,000 customers across Ireland largely in rural parts of the country.