In a strategic move to bolster its network reach, alternative fibre builder CityFibre has successfully acquired Lit Fibre, marking the first step in its plan to consolidate within the UK’s burgeoning altnet sector. Lit Fibre, known for its vertically integrated model encompassing both network construction and ISP services, currently serves over 220,000 premises across more than 20 towns in several regions.
CityFibre’s acquisition entails not only absorbing Lit Fibre’s existing operations but also committing to expanding its network footprint. By early 2025, CityFibre anticipates reaching up to 300,000 premises, contributing significantly to its national target of 8 million premises.
The transaction sees New York-based investment firm Newlight Partners, Lit Fibre’s previous owner, become a minority shareholder in CityFibre. While specific financial details were not disclosed, estimates suggest Lit Fibre’s valuation at around £80 million within CityFibre’s overall £4 billion valuation.
Greg Mesch, CEO of CityFibre, expressed enthusiasm about the acquisition, emphasizing the company’s readiness to integrate Lit Fibre’s infrastructure swiftly. Mesch highlighted the importance of this acquisition as a means to accelerate CityFibre’s ambitious 8 million premises rollout plan.
CityFibre’s partnership with Lit Fibre is seen as a springboard for future acquisitions in the altnet market. The company aims to leverage acquisition strategies to surpass its 8 million premises target, reflecting a broader trend of consolidation within the UK’s competitive fibre landscape.
Joshua Ho-Walker, Partner at Newlight Partners, underscored the significance of this acquisition, citing Lit Fibre’s exceptional business quality and the potential it holds for CityFibre’s expansion plans.
The move towards consolidation in the altnet sector comes amid a landscape characterized by numerous regional players and increasing market saturation. CityFibre’s acquisition strategy is poised to capitalize on this trend, with more deals anticipated over the next two years.
CityFibre’s acquisition of Lit Fibre signifies a pivotal moment in the company’s growth trajectory, setting the stage for a broader expansion that promises to reshape the UK’s fibre infrastructure landscape.
