CityFibre has acquired its fortieth metro network in the UK after completing a deal with IT Managed Services provider Redcentric.
The £5 million acquisition comprises local access duct and fibre network assets in Cambridge, Portsmouth and Southampton, as well as “complementary incremental coverage” in a number of cities where it already has infrastructure.
CityFibre noted that the deal gave it access to “many” of the science, business and research parks in Cambridge.
The company said it had acquired “at least” 137km in total, which would save “considerable time and millions of pounds in capex” when compared to building the equivalent assets itself.
As part of the deal, Redcentric has committed to leasing dark fibre from CityFibre for £4.5 million.
CityFibre said it would make all of the acquired assets available to its wholesale partners “soon”.
CEO Greg Mesch said: “Once again we’ve shown that underutilised legacy fibre assets can find a new home in which to flourish within CityFibre’s wholesale shared infrastructure model.
“We’re very pleased to have secured a deal structure which benefits both our new partner and us, and we look forward to working with Redcentric across our broader national footprint.”
CityFibre, which teamed up with Gigaclear in July in a bid to roll out pure fibre broadband to rural areas, sees its latest acquisition as the next stage in its bid to challenge Openreach.
The BT-owned business, which is facing increased regulatory scrutiny from Ofcom, has made a very public change of strategy this year.
Under the guidance of new CEO Clive Selley, the company has committed to passing two million premises with FTTH technology by 2020.
Last week, Selley said he was “slightly frustrated that we haven’t got the facts out there [about the UK’s broadband infrastructure].”