CityFibre Infrastructure Hldgs PLC Acquisition of network assets from Redcentric Plc (7539K)
26 September 2016 - 4:01PM
UK Regulatory
TIDMCITY TIDMRCN
RNS Number : 7539K
CityFibre Infrastructure Hldgs PLC
26 September 2016
For immediate release 26 September 2016
CITYFIBRE INFRASTRUCTURE HOLDINGS PLC
('CityFibre' or the 'Group' or the 'Company')
Acquisition of duct and fibre network assets from Redcentric
Plc
CityFibre adds Cambridge, Portsmouth and Southampton footprints,
taking its presence to 40 cities
CityFibre (AIM: CITY), a leading designer, builder, owner, and
operator of fibre optic infrastructure in UK towns and cities, is
pleased to announce the acquisition of the entire metropolitan
local access duct and fibre network assets of Redcentric Plc (AIM:
RCN).
The acquired assets comprise 137km of duct and fibre networks
serving 188 Redcentric customer connections, with principal
footprints covering Cambridge, Portsmouth, and Southampton, along
with complementary incremental coverage in the existing CityFibre
footprints of Nottingham, Derby and Northampton. With this
agreement, CityFibre expands its metro fibre presence to 40 cities,
including 25 of the top 30 cities outside Greater London.
The transaction structure follows CityFibre's standard anchor
formula. The Group will pay a cash consideration of GBP5.0m in
return for a commitment from the vendor to a minimum revenue
guarantee of GBP4.5m under a 10-year lease-back agreement for
continued use of the network to serve its existing customer base.
The expanded CityFibre footprint now addresses an estimated 28,000
public sector sites, 280,000 businesses, 7,800 cell sites and 4m
homes.
Harrogate-based Redcentric is a leading national IT Managed
Services provider to the enterprise and public sector segments. As
part of the transaction, Redcentric has also entered into a
framework agreement with CityFibre for the use of CityFibre's
infrastructure across its national footprint in future.
The Group will launch the acquired city footprints into full
commercial production in due course.
Greg Mesch, Chief Executive of CityFibre, commented:
"We're delighted with today's acquisition of duct and fibre
network assets from Redcentric, which takes us to an important
milestone of coverage of 40 cities. In these assets, we have
identified what we believe to be underutilised legacy fibre assets
which will flourish by being part of CityFibre's wholesale shared
infrastructure model. We are particularly pleased to welcome
Redcentric onboard as the 51(st) service provider partner in our
ecosystem, and we look forward to working with them across our
broader national footprint in future."
The information communicated in this announcement is inside
information for the purposes of Article 7 of Regulation
596/2014.
For further information, please contact:
CityFibre Infrastructure Holdings www.cityfibre.com
plc
Greg Mesch, Chief Executive Officer Tel: 0845 293
0774
Terry Hart, Chief Financial Officer
James Enck, Head of Investor Relations Tel: 0333 150
6283
finnCap (Nomad and Joint Broker) www.finncap.com
Stuart Andrews / Christopher Raggett Tel: 020 7220
(Corporate Finance) 0500
Simon Johnson (Corporate Broking)
Liberum (Joint Broker) www.liberum.com
Steve Pearce / Steven Tredget / Tel: 020 3100
Richard Bootle 2000
Vigo Communications www.vigocomms.com
Jeremy Garcia / Fiona Henson Tel: 020 7830
9700
About CityFibre:
CityFibre is the national builder of Gigabit Cities, as the UK's
largest alternative provider of wholesale fibre network
infrastructure. It has major metro duct and fibre footprints in 40
cities across the UK and a national long distance network that
connects these cities to major data-centres across the UK and to
key peering points in London.
The company has an extensive customer base spanning service
integrators, enterprise and consumer service providers and mobile
operators. Providing a portfolio of active and dark fibre services,
CityFibre's networks address 28,000 public sites, 7,800 mobile
masts, 280,000 businesses and 4.0 million homes.
CityFibre is based in London, United Kingdom, and its shares
trade on the AIM Market of the London Stock Exchange (AIM: CITY).
Further information on the company can be found at
www.cityfibre.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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