Lightower Fiber Networks to Acquire Lexent Metro Connect
Expands fiber footprint in New York City metro region to address surging demand for high-bandwidth connectivity and dark fiber
Lightower Fiber Networks, a leading metro fiber network and bandwidth service provider based in Boxborough, MA., announced today that it is acquiring Lexent Metro Connect, a leading provider of custom built dark fiber networks, headquartered in New York, NY.
With the acquisition of Lexent, Lightower expands its existing fiber footprint and customer base in the greater New York City region, including New Jersey. The addition of Lexent will add over 150 fiber route miles and over 200 commercial buildings to Lightower’s growing network. Lightower also adds low latency routes between critical New York City and New Jersey financial exchanges and data centers.
“We continue to see increasing demand for fiber-based networking and connectivity solutions throughout the greater New York City region. Lexent’s network is the premier fiber network in New York City with the most density. It is a natural fit for expanding Lightower’s reach in the region. Lexent’s network also offers many fiber routes that are optimized for ultra low latency solutions to the financial and media industries,” explained Lightower President and CEO Rob Shanahan.
"The acquisition of Lexent by Lightower further validates our commitment and singular focus on becoming the New York region's leading provider of underlying, truly neutral fiber optic network infrastructure," stated Ray La Chance, President and CEO of Lexent Metro Connect. "In addition, we couldn't be more pleased with Lightower's decision to acquire our business and we looking forward to continuing our role as an underlying enabler in support of Lightower's expansion throughout the region."
More Fiber, More Routes, More Local Access
The merger of the two networks supports Lightower’s mission of owning and operating a dense, next-generation fiber network that provides a complete portfolio of high-bandwidth services utilizing end-to-end fiber connectivity. The combined network increases Lightower’s last-mile fiber access into buildings in the greater New York area, including all of Manhattan, Brooklyn, the Bronx, and New Jersey.
Lightower’s current network is comprised of over 4,600 fiber route miles throughout Massachusetts, New Hampshire, Rhode Island, Connecticut, New Jersey, and New York including New York City. The Lexent network includes 150 route miles of fiber throughout New York City and New Jersey.
All Lexent customers will benefit from the addition of the complete suite of Lightower managed services including Ethernet, wavelengths, SONET, Internet access, and collocation. Lightower customers will gain access to Lexent’s dense network of fiber in New York and New Jersey for both dark fiber solutions and lit service solutions.
Lightower currently offers solutions comprised of Ethernet, dark fiber, WDM wavelengths, Internet access, SONET, and collocation services. Lexent currently offers custom dark fiber solutions.
Terms of the deal were not disclosed. The transaction is subject to regulatory approval and is expected to close in Q4 2010.
Lightower Fiber Networks is backed by M/C Venture Partners Pamlico Capital, and Ridgemont Equity Partners. GE Capital Markets and SunTrust Robinson Humphrey have fully committed to provide the required debt capital for the acquisition and will serve as Joint Bookrunners. GE Capital is acting as Administrative Agent. The Bank Street Group LLC served as the exclusive financial advisor to Lexent Metro Connect in connection with this transaction. Lexent Metro Connect is privately held.
Pamlico Capital is a private equity firm founded in 1988 that invests in growing middle market companies in North America. Pamlico Capital seeks control-oriented growth equity investments of up to $200 million alongside founders and proven leaders in its target industries: communications, healthcare, services and software. The firm, based in Charlotte, NC, has assets under management of approximately $4 billion. For additional information, please visit www.pamlicocapital.com.