CityFibre raises £900m to fund broadband acquisitions
July 31, 2026 11.36 Europe/London By Julian Clover


CityFibre has secured £900 million in new equity funding to support acquisitions as it looks to consolidate the UK’s alternative broadband market.

The investment comes from existing shareholders including Goldman Sachs and Abu Dhabi sovereign wealth fund Mubadala. It follows a £1.5 billion refinancing completed last year.

The company says the funding will support mergers and acquisitions as it seeks to expand its full-fibre network beyond eight million premises and establish what it describes as the UK’s third national broadband network.

According to The Telegraph, CityFibre is targeting acquisitions of larger alternative network operators with nationwide footprints, with companies such as Hyperoptic and Community Fibre among those reportedly under consideration.

The move comes as consolidation accelerates across the UK fibre sector, with many alternative network providers facing pressure from slower customer growth, intense competition and higher financing costs.

CityFibre currently passes around 4.7 million premises and says it has more than one million live customer connections. The company recently signed Sky as a wholesale customer, adding to existing partnerships with VodafoneThree and other internet service providers.

Alongside the new investment, CityFibre is also exploring options to optimise its capital structure as it continues to invest in network expansion.