Smart technology and digital services provider Connexin begun 2024 with the launch of an all-in-one business broadband service designed specifically for small and medium-sized enterprises (SMEs) in Hull, and is now the subject of a strategic acquisition of its full-fibre infrastructure to CityFibre.
Founded in Hull in 2006, Connexin announced a broadband network in September 2021 with the aim of disrupting the existing monopoly by offering residents and businesses freedom of choice when selecting a fibre broadband provider.
It currently provides services across five areas: home, business, enterprise, public sector and utilities. It also develops and operates smart infrastructure to public sector and utilities firms to enhance connectivity. The company ended 2024 with the completion of the first stage of its contract for the provision of broadband to more than 34,000 rural homes under the UK’s Project Gigabit scheme.
The strategic acquisition agreement includes built and work-in-progress fibre network assets which currently pass more than 80,000 premises, as well as work in progress to a further 20,000 premises, with options to extend further throughout Hull over time. The agreement will see Connexin’s shareholder, Patrizia’s European Infrastructure Fund II, become a minority shareholder in CityFibre.
The deal includes the Project Gigabit contract, enabling CityFibre to establish a material foothold across Hull and East Riding, enabling the expansion of its footprint by up to 185,000 premises. CityFibre said the acquisition underscores the firm’s commitment to actively engaging in market consolidation as part of its nationwide roll-out to more than eight million premises.
It follows CityFibre’s acquisition of Lit Fibre in May 2024, which was fully integrated in less than nine months, demonstrating CityFibre’s ability to integrate and commercialise acquired footprints to drive network growth.
CityFibre will also take on Connexin’s Project Gigabit contract to roll out gigabit-capable broadband to hard-to-reach premises in Nottinghamshire and West Lincolnshire. This will become the10th Project Gigabit delivery contract secured by CityFibre, which will “unlock a future expansion” to more than 50,000 non-subsidised premises in the target regions.
Connexin will now expand nationwide through CityFibre’s network, and build on existing business in internet of things (IoT), including rolling out one of the UK’s largest long-range wide-area networks (LoRaWAN) and winning contracts for more than two million smart water meters.
On a technology basis, CityFibre will immediately begin integrating Connexin’s XGS-PON network to bring its own wholesale products, pricing and services across the footprint. CityFibre expects to complete the integration later in 2025, further extending its nationwide network which already passes more than 4.4 million premises.
Commenting on the acquisition, Connexin CEO Furqan Alamgir said: “We’re thrilled to partner with CityFibre as we focus on our national growth strategy. This partnership will bring the best of our combined expertise to consumers and businesses alike across the UK.
“The next phase of our growth is tremendously exciting as we accelerate our focus on expanding our smarter home, business, enterprise, public sector, and utilities products and services across the UK, enabling these rapidly evolving markets to achieve ambitious goals through adopting smarter technology.”
CityFibre CEO Greg Mesch said: “Connexin has built an outstanding network and it’s a brilliant fit for CityFibre. Our mature wholesale model will now bring Hull’s homes and businesses increased choice and access to unrivalled connectivity products, services and prices.
“After our rapid integration of Lit Fibre’s network, we have demonstrated that this is an effective way to expand our footprint, and we look forward to playing an active role in the sector’s accelerating consolidation in 2025.”
