Digital infrastructure is ‘brilliant fit’ for communications specialist

Telecommunications network provider, CityFibre, is acquiring Hull-based Connexin’s full fibre infrastructure.

This deal is designed to establish a foothold across Hull and East Riding and enable the expansion of CityFibre’s footprint by up to 185,000 premises.

It will see Connexin’s shareholder, PATRIZIA’s European Infrastructure Fund II, become a minority shareholder in CityFibre.

The acquisition includes Connexin’s built network assets which currently pass more than 80,000 premises, as well as work in progress to a further 20,000 premises and options to extend further throughout Hull over time.

CityFibre will also take on Connexin’s Project Gigabit contract to rollout fast, reliable gigabit-capable broadband to over 34,000 hard-to-reach premises in Nottinghamshire and West Lincolnshire.

This will become the tenth Project Gigabit delivery contract secured by CityFibre and will unlock a future expansion to over 50,000 non-subsidised premises in the target regions.

Connexin will now expand nationwide, across CityFibre’s network, and build on its success in Internet of Things (IoT), including rolling out one of the UK’s largest LoRaWAN® (long range wide-area) networks and winning contracts for over two million smart water meters.

Greg Mesch, CEO of CityFibre, said: “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.

“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.”

Furqan Alamgir, CEO of Connexin, said: “We’re thrilled to partner with CityFibre as we focus on our national growth strategy.

“This partnership will bring the best of our combined expertise to consumers and businesses alike across the UK.

“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.”

Phoebe Smith, managing director, PATRIZIA Infrastructure, said: “This agreement is a great step forward for infrastructure competition in Hull.

“We’re pleased to be joining as CityFibre shareholders and to support its continued expansion and success as the UK’s leading full fibre wholesale platform.

“We’re very proud of everything Connexin has achieved, and we look forward to continuing to support its growth as a leading provider of LoRaWAN® and IoT infrastructure.”

Cameron Barney Herbst Hilgenfeldt acted as financial advisor for Connexin.

Orrick, Herrington & Sutcliffe acted as legal advisor to Connexin. PwC supported CityFibre with financial and Tax due diligence.

Bristows LLP acted as legal advisor to CityFibre. Cartesian acted as integration advisor to CityFibre.