CityFibre is the UK’s largest independent full fibre platform and acquired Entanet in 2017 to provide wholesale operations expertise and the partner base it needed to accelerate its growth in the business market and drive penetration across its own expanding network.

Now, almost a decade later, this transaction enables CityFibre to focus exclusively on scaling services over its full fibre network.

K3 Deal Advisory advised CityFibre on the transaction.

The team worked closely with the CityFibre management to position the business for sale and highlight the huge potential in Entanet as a platform in the UK communications channel with its 30 year heritage as a wholesale aggregator.

By combining its sector knowledge and long standing relationships with other channel providers, K3DA helped identify and secure the right partner capable of re-invigorating the Entanet brand and proposition as well as becoming a key partner to CityFibre moving forward.

The transaction was led by Paul Billingham, Principal at K3DA, supported by Luke Ettenfield-Nann, Associate Director, and Greg Rawsthorne, Senior Manager.

Entanet was sold as a wholesale aggregator platform to telecoms entrepreneur Tom O’Hagan, founder and former CEO of Virtual1, who will invest to grow and becomes a new strategic wholesale customer of CityFibre. This ensures Entanet’s customers continue to have access to CityFibre’s network while also benefiting from planned investment in automation and enhanced portfolio – including a broader range of off-net capabilities.

CityFibre’s acquisition of Entanet almost a decade ago played an important role in accelerating our business market growth. This sale is the natural next step, allowing us to simplify our model and focus exclusively on providing services over our own infrastructure. We’ll be able to innovate faster, further improve performance and support all our customers more effectively. We welcome Entanet as a new strategic customer of CityFibre, and look forward to growing together as demand for full fibre continues to accelerate.

George Wareing, Chief Commercial Officer, CityFibre

K3 Deal Advisory’s extensive sector relationships ensured we could reach a range of channel focused providers in our process and assess not just the most appropriate buyer but also the party that we could enjoy a long term strategic relationship with. The team at K3DA supported us throughout the process and we are delighted with the outcome and the opportunity to grow our new partnership with Tom and his team.

Will Creedy, Corporate Development Director, CityFibre

Entanet has had a relatively low profile in recent years but it is a name synonymous with the channel. We are delighted to see it re-launch as an independent channel provider with Tom and his team. There has been a lot of consolidation in the channel in recent years so it is good to see a new incumbent with the ambition to invest and support its loyal partner base.

Paul Billingham, Principal at K3 Deal Advisory