Ultrafast internet firm Lit Fibre agrees takeover
A READING-based technology firm is now under new ownership: Lit Fibre is now part of CityFibre.
The company adds 300,000 premises to its Ready For Service footprint for ultrafast fibre broadband.
Lit Fibre, based in Greyfriars Road, is an alternative fibre network (altnet) comprising a network builder and Internet Service Provider (ISP) and was part of Newlight Partners.
It has a current footprint of more than 200,000 premises across more than 20 towns in Wiltshire, Gloucestershire, Hertfordshire, Worcestershire, Essex and Suffolk.
The share-based acquisition will see the old owners become minority shareholders in CityFibre and is expected to be completed by the end of June.
From integration, ISPs will be able to access the same products, pricing and service experience across the extended footprint.
CityFibre says this is the first of several deals it expects to make over the next two years.
Lit’s network is built exclusively using existing poles and ducts and benefits.
Greg Mesch, chief executive officer at CityFibre, said: “Our self-build rollout programme has already delivered more than 3.5m premises to our partners and we’re excited to accelerate this even faster through targeted acquisitions like Lit Fibre.
“Competition is not just about scale, it’s about providing partners access to carrier-grade networks that reduce their costs to serve and improve the service experience they can provide their customers.
“The UK market needs a third infrastructure platform of scale to ensure competition matures and that it continues to deliver for consumers and the country. Our acquisition of Lit is a clear demonstration of our intent to establish CityFibre as the core of that third platform.”
Joshua Ho-Walker, partner at Newlight Partners, said the company was proud of
Lit Fibre’s success: “This is an exciting mile-stone, and we look forward to becoming a shareholder in CityFibre and continuing to help build the UK’s leading full fibre wholesale platform,” he said.
Tom Williams & Ben Bresler, Co-Founders at Lit Fibre, said: “We are delighted that CityFibre has decided to acquire Lit Fibre, the first in their new targeted acquisition strategy. Just over three years ago we established Lit to bring internet connections of the highest quality to towns across the UK.
“Along with our team we’ve been successful in building an enviable reputation for quality and customer service that our customers rate highly.
“Our efficient build model and reputation for excellent quality and service has been recognised by CityFibre and we’re looking forward to working with them in the coming months to complete the deal.”
Houlihan Lokey acted as financial advisor to Lit Fibre on the transaction. EY supported CityFibre with financial due diligence on the transaction. Weil, Gotshal & Manges LLP acted as legal advisor to Newlight Partners, Bristows LLP acted as legal advisor to CityFibre, and Stevens & Bolton LLP acted as legal advisor to Lit Fibre. Cartesian acted as integration advisor to CityFibre.