Lightower acquires Fibertech in $1.9 billion deal
28 April 2015 |
Lightower Fiber Networks has purchased Fibertech Networks in an all-cash deal worth $1.9 billion.
The acquisition will expand Lightower’s network by providing the company’s business and wholesale customers with access to over 30,000 route miles of fibre in the Northeast, Mid-Atlantic and Midwest in the US.
In addition, Lightower will gain access to as many as 5,000 mobile towers and 13,000 on-net facilities, including data centres, financial exchanges, content hubs, co-location sites and commercial buildings.
"The combination of Lightower and Fibertech is a win for customers by enabling us to serve more locations, across a wider area, and with more service options - all with the same superior level of reliability and customer support," said Rob Shanahan, CEO at Lightower.
"Lightower and Fibertech have built distinct networks in their respective regions that will be very complementary when merged. In addition, we plan to continue to invest capital in these regions for additional network expansion.”
Shanahan will remain CEO of the combined company. The transaction will be funded through a combination of equity and debt and backed by Lightower’s existing investors including Berkshire Partners, Pamlico Capital and ABRY Partners. The deal is expected to close in the third quarter of 2015.
Lightower has sought to increase its footprint through organic expansions and acquisitions such as its $2 billion purchase of Sidera Networks in 2013.
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