London-based fiber firm CityFibre snapped up KCOM's national fiber network assets for $136.3 million and has secured $272.6 million in financing to continue to expand the national network.
CityFibre said the deal will increase its metro footprint to 36 cities and enable the company to expand to 50 cities by 2020, reaching approximately 20 percent of the U.K. market. The deal will also make CityFiber the U.K.'s largest wholesale infrastructure provider after BT (NYSE: BT).
The financial terms of the deal include $80 million of new equity and $100 million in debt facilities. The deal and the financing are expected to close in mid-January.
CityFibre said the deal will expand its footprint by more than 300 percent and will include 1,100 kilometers of duct and fiber network in 24 U.K. cities as well as 1,100 kilometers of a national long distance network that connects these cities to major data centers across the U.K. and to Internet peering points in London.
When the deal is complete, CityFibre will have more than 7,000 mobile cell sites and 24,500 public sites, and will be connected to 245,000 businesses. It also will have the potential to support fiber-to-the-home (FTTH) deployments to 3.5 million homes.
CityFibre has been aggressively expanding its fiber network. In 2014 the company formed a joint venture with BSkyB and TalkTalk to provide up to 1 Gbps speed broadband in York as a way battle incumbent telco BT with their own broadband network.
- see this press release
BSkyB, TalkTalk, CityFibre joint venture challenges BT's broadband hold
Report: Google Fiber eyeing UK as next broadband stop, poses challenge to BT