Liberty Global is launching an enterprise-focused joint venture in the UK with MXC Capital.

The operator and the tech-focused merchant bank said that they saw an opportunity to consolidate “a fragmented market”.

Specifically, they said they planned to build an IT services provider focused on small and medium sized business customers.

“The newly established joint venture company will initially seek to undertake a series of acquisitions in order to create an enterprise of size and scale,” a statement read.

Liberty, via its Liberty Global Europe 2 subsidiary, will share equal ownership of the JV, to be called MXLG Acquisitions, with MXC.

Both companies will appoint two directors to its board.

MXC is an investor in seven companies, including ones focused on IT, cloud, big data analytics and recruitment.

Liberty owns Virgin Media in the UK, whose business division mainly offers connectivity solutions to SMEs, large enterprises and the public sector.

The operator has yet to respond to European Communications about what impact the JV will have on Virgin Media Business, which saw revenues rise two percent to £186 million in the three months to 30 September.

The company said growth was driven by the small office-home office segment, which offset lower data and voice revenues.

[Read more: Déjà vu at Liberty Global with Q3 net losses, rising revenues in Europe]

According to a report last month, the ICT market is set to be the biggest growth area of the overall telecoms business space.

Analysys Mason has forecast global sales of the likes of cloud and security services would reach $230 billion by 2022.

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