Technology-focused merchant bank MXC Capital Ltd. has agreed to form a joint venture with Liberty Global plc's Liberty Global Europe 2 Ltd.
The new company, MXLG Acquisitions Ltd., will acquire smaller companies to form an IT services provider for small and medium-sized U.K. business customers, MXC Capital said.
Liberty Global and MXC Capital will equally own MXLG Acquisitions and will each appoint two directors to its board.
The two companies have been in talks over the joint venture for some months and have already identified potential acquisition targets, London's Financial Times reported.
A source told the FT that the venture, if successful, could be folded into the business operations of Liberty Global subsidiary Virgin Media Inc., which is focused on small and medium-sized enterprises and has been seeking to grow its business.