The share-based acquisition, first announced two months ago, will increase CityFibre's nationwide full fibre rollout by up to 300,000 premises as part of its 8 million rollout programme. Newlight Partners will also join as minority shareholders.
Lit is a vertically integrated altnet, comprising a network builder and ISP. It has a footprint of more than 220,000 premises across more than 20 towns in Wiltshire, Gloucestershire, Hertfordshire, Worcestershire, Essex and Suffolk, and serves a subscriber base of approximately 10,000 retail customers.
CityFibre has worked with Lit's management team over the last two months to begin the integration of Lit's 10Gbps XGS-PON network infrastructure into CityFibre's carrier-grade network. The integration will be completed later this year, enabling CityFibre's ISP partners to access the same products, pricing and service experience across the extended footprint.
CityFibre intends to complete Lit's work-in-progress deployment as well as the majority of its planned network rollouts. In total, the network is expected to reach up to 300,000 premises by early 2025. Lit's network is built using existing poles and ducts.
Lit's swift network integration will be prioritised, while the full fibre broadband services its customers receive will not be affected by the transaction. As a wholesale-only operator, CityFibre will look at options for the retail ISP following the integration of the network.
The acquisition of Lit is the first of several deals CityFibre expects to close over the next two years. It follows CityFibre's decision to pursue altnet acquisitions as a strategic growth driver towards and potentially beyond its 8 million premises target.
Greg Mesch, chief executive officer at CityFibre, said, "We're delighted to have concluded our acquisition and we'd like to welcome everyone at Lit to the CityFibre team. We’re also pleased to welcome Newlight Partners, with their deep understanding of the fibre infrastructure market, as our newest CityFibre shareholders.
"We’ve already been working hard with the great team at Lit to ensure that its network is integrated quickly as our partners are excited to begin marketing over the new footprint. This is a great opportunity for us to hone our integration capabilities as acquisition becomes an increasing accelerant to our 8 milliom plan."
Joshua Ho-Walker, partner at Newlight Partners, said, "We are excited to be CityFibre's newest shareholder and we look forward to helping bring CityFibre's market-leading, full-fibre platform to 8m homes in the UK. This acquisition is important recognition for the high-quality business that Lit Fibre built and we are grateful for the Lit Fibre team's hard work and dedication over the past few years."