In an ambitious move to expand its reach, CityFibre announced the acquisition of Connexin’s fibre network infrastructure. This strategic acquisition aims to integrate Connexin’s existing network in Hull and East Riding, which covers over 80,000 premises. Moreover, plans include expanding this reach to an additional 20,000 locations.
Highlighting a crucial aspect of this deal, CityFibre will assume control of Connexin’s £58.6 million Project Gigabit contract. This entails rolling out fibre connectivity to 34,000 hard-to-reach areas in Nottinghamshire and West Lincolnshire. Furthermore, CityFibre believes this project will eventually extend its footprint by over 50,000 non-subsidised premises, significantly boosting their overall capacity by 185,000 premises.
CityFibre has not disclosed the financial specifics of the transaction. Greg Mesch, CityFibre’s CEO, expressed enthusiasm, stating, “Connexin has built an outstanding network, and it’s a brilliant fit for CityFibre.” He emphasized the company’s successful integration history, and their intention to continue driving sector consolidation.
In this acquisition, Connexin’s ISP and Smart Home ventures were not included. However, they will access CityFibre’s network through a new wholesale agreement. Connexin’s CEO, Furqan Alamgir, shared optimism, stressing their commitment to scaling the Smart Home and Utilities sectors across the UK.
The backing of leading global asset investor PATRIZIA as a minority shareholder further strengthens CityFibre’s position. Just last week, the company revealed plans to double its customer base to one million by year-end. This growth strategy includes acquiring smaller network players, supported by an objective to secure a £1 billion loan and raise additional funds from investors like Goldman Sachs and Mubadala.