Connexin: CityFibre Set to Acquire Connexin's FTTP Network
Deal News | Mar 24, 2025 | EIN
CityFibre has announced the acquisition of Connexin's UK FTTP broadband network, marking its latest strategic move to enhance its presence in the UK's broadband market. This acquisition will see CityFibre integrating Connexin's 10Gbps capable FTTP network, which covers East Yorkshire, Nottinghamshire, and Lincolnshire. Connexin, backed by an £80 million investment from PATRIZIA, has been expanding its full fibre network across 500,000 premises, specifically targeting rural areas in partnership with Project Gigabit. The deal allows CityFibre to extend its network footprint by 185,000 premises and to assume Connexin's Project Gigabit contract, aimed at hard-to-reach rural regions. This acquisition is part of CityFibre's broader M&A strategy to bolster its infrastructure capabilities. The transaction involves several industry players and advisors, including PATRIZIA, Cameron Barney Herbst Hilgenfeldt, Orrick, Herrington & Sutcliffe, PwC, Bristows LLP, and Cartesian. As CityFibre progresses with the integration, Connexin intends to remain an ISP, leveraging CityFibre's network to offer enhanced services.
Sectors
- Telecommunications
- Infrastructure Investment
- Technology
Geography
- United Kingdom – The acquisition focuses on expanding broadband networks within the UK, particularly in regions like East Yorkshire, Nottinghamshire, and Lincolnshire.
Industry
- Telecommunications – The acquisition involves CityFibre and Connexin, both of which are engaged in providing broadband and internet services.
- Infrastructure Investment – The transaction highlights the involvement of infrastructure-focused investment entities like PATRIZIA and Antin Infrastructure Partners.
- Technology – The integration of advanced broadband technology for enhanced internet connectivity across the UK is central to the transaction.
Financials
- £80 million – The investment by PATRIZIA supporting Connexin's network expansion.
- £58.6 million – State aid funding under Project Gigabit contract for Connexin.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| CityFibre | Acquirer | Companies | CityFibre is a major UK network operator expanding its broadband reach through acquisitions. |
| Connexin | Target Company | Companies | Connexin is a UK broadband provider with a growing FTTP network, now being acquired by CityFibre. |
| PATRIZIA | Investor | Companies | PATRIZIA is an investor backing Connexin with substantial funding, becoming a minority shareholder in CityFibre post-acquisition. |
| Antin Infrastructure Partners, Goldman Sachs Asset Management, Mubadala Investment Company, Interogo Holding | Owners | Companies | These entities collectively own CityFibre, supporting its growth and acquisition strategy. |
| Cameron Barney Herbst Hilgenfeldt | Financial Advisor | Companies | Financial advisor for Connexin in the transaction. |
| Orrick, Herrington & Sutcliffe | Legal Advisor | Companies | Legal advisor to Connexin for the acquisition. |
| PwC | Financial & Tax Due Diligence | Companies | Provided financial and tax due diligence support for CityFibre. |
| Bristows LLP | Legal Advisor | Companies | Legal advisor to CityFibre for the acquisition. |
| Cartesian | Integration Advisor | Companies | Provided integration advice to CityFibre for the acquisition process. |