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The deal will see over 185,000 premises added to CityFibre’s full fibre network
Today, wholesale fibre network operator CityFibre has announced the acquisition of smaller altnet Connexin’s network infrastructure.
The deal will see CityFibre integrate Connexin’s fibre-to-the-premise (FTTP) network in Hull and East Riding, which currently reaches over 80,000 premises, with a further 20,000 planned for the future.
The deal will also see CityFibre take ownership of Connexin’s Project Gigabit contract, worth £58.6 million, which pledges to rollout fibre to 34,000 hard-to-reach premises in Nottinghamshire and West Lincolnshire. This project will also “unlock a future expansion to over 50,000 non-subsidised premises in the target regions”, according to the company’s press release.
In total, CityFibre says the deal will potentially increase their fibre footprint by over 185,000 premises.
Financial details of the deal were not released.
“Connexin has built an outstanding network and it’s a brilliant fit for CityFibre. Our mature wholesale model will now bring Hull’s homes and businesses increased choice and access to unrivalled connectivity products, services and prices. After our rapid integration of Lit Fibre’s network, we have demonstrated that this is an effective way to expand our footprint and we look forward to playing an active role in the sector’s accelerating consolidation in 2025,” said CityFibre CEO Greg Mesch.
“Given our major role in the government’s Project Gigabit rollout, we are also pleased to take on a further contract, delivering next-generation digital infrastructure for more hard-to-reach rural communities across Nottingham and West Lincolnshire,” he added.
Connexin’s ISP and Smart Home businesses are not included in the deal and instead will gain access to CityFibre’s network via a new wholesale agreement.
“The next phase of our growth is tremendously exciting as we accelerate our focus on expanding our Smarter Home, Business, Enterprise, Public Sector and Utilities products and services across the UK, enabling these rapidly evolving markets to achieve ambitious goals through adopting smarter technology,” said Furqan Alamgir, CEO of Connexin.
Connexin’s primary backer, global asset investor PATRIZIA, will also become a minority shareholder in CityFibre.
The news comes just a week after CityFibre announced it was aiming to double the number of customers on its network to 1 million by the end of the year, 70% of which would come from the acquisition of smaller network players.
To support this goal, the company is currently in negotiations with various banks to secure a £1 billion loan. It is also seeking to raise a further £500 million from existing investors, including Goldman Sachs and Abu Dhabi’s sovereign investor Mubadala.
Speaking to The Financial Times, CityFibre said that the company was in a “strong position”, with shareholders that are “committed to CityFibre’s long-term success”.
Join CityFibre and the rest of the UK fibre market in discussion at Connected North, live in Manchester
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