Goldman Sachs-Based Consortium to Acquire U.K.-Based CityFibre, Pioneer of the Wholesale Open Access Broadband

BROADBAND BREAKFAST INSIGHT: We’ve been watching the progress of CityFibre closely because of what it is demonstrating on the other side of the pond: The future of broadband is in wholesale. Separating infrastructure from services provides significant advantages in being able to raise capital. This is necessary to construct gigabit fiber networks in order to future-proof America’s currently slower-than-it-should-be broadband. We’ll look forward to unpacking the implications of this deal for the United States.

CityFibre set to be bought by Goldman Sachs-backed consortium in £538 million deal

UK-based telecoms firm CityFibre is the subject of a £538 million takeover bid from a consortium of infrastructure funds backed by Goldman Sachs.

The bid was made by Antin Infrastructure Fund and West Street Infrastructure Funds and has already been accepted by two-thirds of CityFibre shareholders.

The company, which offers local wholesale fibre, has recommended the offer to shareholders, saying it will help the firm achieve its ambition of deploying full-fibre to 20% of the UK population and offer an alternative to BT’s Openreach.

“Under private ownership, CityFibre will be able to gain alternative and potentially easier access to the financing required for its announced FTTH (fibre-to-the-home) deployment,” said Chris Stone, chairman of CityFibre.

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Source: CityFibre set to be bought by Goldman Sachs-backed consortium in £538 million deal

(Photo of CityFibre CEO Greg Mesch.)