CityFibre Infrastructure Hldgs PLC Acquisition of network assets from Redcentric Plc (7539K)

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: [phone] 
                                             0774 
  Terry Hart, Chief Financial Officer 
  James Enck, Head of Investor Relations    Tel: [phone] 
                                             6283 
 
  finnCap (Nomad and Joint Broker)          www.finncap.com 
  Stuart Andrews / Christopher Raggett      Tel: [phone] 
   (Corporate Finance)                       0500 
  Simon Johnson (Corporate Broking) 
 
  Liberum (Joint Broker)                    www.liberum.com 
  Steve Pearce / Steven Tredget /           Tel: [phone] 
   Richard Bootle                            2000 
 
  Vigo Communications                       www.vigocomms.com 
  Jeremy Garcia / Fiona Henson              Tel: [phone] 
                                             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

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September 26, 2016 02:01 ET (06:01 GMT)