CityFibre, a specialist in ultrafast broadband, is set to be acquired for £540 million, marking a significant shift in the UK’s broadband landscape.
After doubling its annual revenue, CityFibre has attracted the attention of a consortium involving Antin and Goldman Sachs’ WSIP, positioning the company for future expansion.
The Consortium Behind the Acquisition
CityFibre Infrastructure Holdings Plc, listed on the AIM market, has reached an agreement with a consortium comprised of European private equity firm Antin and West Street Infrastructure Partners (WSIP). This strategic partnership aims to enhance CityFibre’s capabilities significantly.
The consortium plans to purchase shares at 81 pence each, effectively valuing CityFibre at £537.8 million. The acquisition represents a strategic move to solidify their position in the UK’s fibre infrastructure sector.
CityFibre’s Expansion Plans
CityFibre currently boasts fibre metro networks in 42 towns and cities, with aspirations to expand to 50 by 2020. This enhances its status as the UK’s largest alternative provider of wholesale full fibre infrastructure.
Chairman Chris Stone highlights CityFibre’s transformational journey since its 2014 IPO, noting the potential for easier financing under private ownership.
Financial Performance and Strategic Achievements
CityFibre’s latest financial results reveal a remarkable 126% increase in turnover, reaching £34.8 million, accompanied by higher gross profit and earnings.
CEO Greg Mesch celebrates the company’s strategic progress, placing CityFibre at the forefront of the UK’s emerging gigabit infrastructure movement.
The acquisition of Entanet for £29 million and securing a significant public sector contract in Glasgow represent key milestones in this journey.
Strategic Partnerships Fuel Growth
CityFibre’s landmark agreement with Vodafone to launch Fibre-to-the-Home (FTTH) deployment for up to five million homes underscores its growth strategy.
Philippe Camu of WSIP praises CityFibre as an innovative communication infrastructure firm, emphasising its crucial role in advancing the UK’s digital economy.
Investors’ Optimism and Future Development
Both Antin and WSIP express strong support for CityFibre’s vision to expand fibre-based networks across the UK.
Mark Crosbie, Managing Partner of Antin, voices excitement about supporting CityFibre’s next development phase, anticipating a strengthened presence in UK cities.
With backing from major investors, CityFibre is poised to play a pivotal role in shaping the UK’s digital future.
Conclusion of the Mega Deal
The impending acquisition signifies a substantial endorsement of CityFibre’s strategic vision and operational achievements.
Under private ownership, CityFibre is well-positioned to lead the charge in providing fibre infrastructure across significant portions of the UK market.
This acquisition embodies a commitment to transforming and expanding the UK’s digital infrastructure, reflecting an era of innovation and growth.
CityFibre’s Vision for the Future
Looking forward, CityFibre’s commitment to expanding the UK’s fibre infrastructure remains steadfast.
They aim to enhance their network capabilities, contributing substantially to the national broadband landscape transformation.
CityFibre’s acquisition heralds a transformative chapter in UK’s broadband infrastructure, promising to deliver significant advancements.
With solid backing from Antin and WSIP, CityFibre is set to revolutionise the country’s digital economy, ensuring widespread access to high-speed connectivity.
As the company embarks on this new journey, the UK can anticipate a future of enhanced digital capabilities and infrastructure growth.