Business and science parks to benefit from Cambridge fibre fest
CityFibre’s acquisition of key fibre network assets from Redcentric stands to provide a major boost for science and technology hubs in the Cambridge cluster.
In Cambridge, the network reaches many of the city’s key science, business and research parks – home to a vast range of the UK’s most successful high technology businesses.
Once made widely available, the networks will also benefit the wider local communities as they attract inward investment and stimulate economic development in a new ‘Gigabit City.’
This week’s £5 million acquisition enabled CityFibre to add Cambridge, Portsmouth and Southampton footprints – taking its presence to 40 cities; it acquired all the metropolitan local access duct and fibre network assets of IT managed services provider Redcentric.
The buyer says the deal makes it an increasingly powerful national competitor to BT Openreach.
The deal not only provides CityFibre with significant metro networks in Cambridge, Portsmouth and Southampton but also complementary incremental coverage in a number of existing city footprints including Northampton, Nottingham and Derby.
The acquisition saves CityFibre considerable time and millions of pounds in capex when compared to a self-build alternative.
Within the £5m network acquisition, CityFibre has secured £4.5m in long term dark fibre leasing commitments from Redcentric which becomes a major new customer. The newly acquired networks, such as the 44km footprint throughout Cambridge, are all routed to address local areas of identified high demand for high bandwidth services. This will be of immediate benefit to CityFibre’s partners.
Fraser Fisher, CEO of Redcentric said: “This disposal is in line with our strategy of control over our customer affecting core assets while not tying up capital where ownership is unnecessary.
“We will continue to service customers in Cambridge and Portsmouth exactly as before, and expect to generate additional revenues and network efficiencies over time as a result of our developing relationship with CityFibre.”
CityFibre CEO Greg Mesch added: “Once again we’ve shown that under-utilised 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.”