UK's CityFibre secures $3 bln to invest in network, M&A

British fibre broadband network CityFibre said on Monday it had agreed 2.26 billion pounds ($3.04 billion) of new finance from its shareholders and existing lenders to fund network investment and acquire smaller rivals.

"CityFibre is key to the consolidation in this sector," Chief Executive Greg Mesch told reporters.

Secondary, he said, the funds would accelerate the pace at which it could connect customers to its network. "We're already at 50,000 orders a month now," he added.

CityFibre has built Britain's third-largest broadband network after BT BT.A and Virgin Media O2 TEF, LBTYA, selling fibre connections via retail providers including Vodafone, TalkTalk and its newest customer Sky.

The funding comprises 500 million pounds in equity from shareholders Infrastructure at Goldman Sachs Alternatives GS, Antin Infrastructure Partners ANTIN, Mubadala Investment Company and Interogo Holding, alongside a 960 million pound expansion of its debt facilities.

CityFibre said it had also agreed a further 800 million pound loan facility to fund acquisitions as it drives consolidation.

The company, which is aiming to expand its wholesale network to more than 8 million premises, reported its first full year of profit in 2024.

Group Chief Operating Officer Simon Holden said CityFibre could quickly integrate any acquired network and make its footprint available to its customers.

"We don't see any particular hurdles with basically all of the assets that we think are available in the UK today," he said. "Bigger is probably better on balance, we are trying to scale up quickly."

($1 = 0.7430 pounds)