Salford-based broadband giant TalkTalk Telecom Group said on Tuesday it agreed to sell its fibre-to-the-premises (FTPP) network FibreNation, which has rolled out ultra-fast broadband connections in York, to Goldman Sachs-backed CityFibre for £200 million.
TalkTalk said the deal, conditional upon shareholder approval, was “underpinned” by long-term wholesale agreement by CityFibre with TalkTalk for residential and business products in the areas where CityFibre builds.
TalkTalk Telecom CEO Tristia Harrison said: “We are pleased to announce today’s agreement with CityFibre, which is good news for TalkTalk, and good news for Britain and its full fibre roll-out ambition.
“Our investment over the last five years and the excellent work delivered by the FibreNation team, combined with CityFibre’s well-established platform, will support wide-geographic reach of full fibre and further drive competition in the market.
“The sale of FibreNation to CityFibre, in combination with a competitive wholesale agreement, enables us to continue our strategy to accelerate TalkTalk’s fibre growth for our residential and business customers, thereby delivering a superior customer experience at an affordable price.”