Lightower Signs Network Agreement with NSTAR Communications
Lightower gains rights to key fiber network in greater Boston area making the company one of the largest metro fiber providers in the country
Lightower Fiber Networks, a leading metro fiber network and bandwidth service provider based in Boxborough, MA, announced today that it has signed a long-term agreement to license all remaining fiber optic network capacity of NSTAR Communications, Inc. NSTAR Communications is a wholly owned subsidiary of NSTAR (NYSE:NST), an energy delivery company headquartered in Boston. Under the terms of the agreement, Lightower secures exclusive rights to all available fiber optic capacity on the NSTAR Communications network, including fiber optic backbone routes and the paths to many buildings.
The addition of the NSTAR Communications fiber network will further enhance the reach and density of Lightower’s all-fiber network in downtown Boston and in the surrounding greater Boston area, including the Route 128 business district. The NSTAR Communications network is comprised of over 280 fiber route miles which provide access to over 225 commercial buildings.
This announcement builds upon a series of strategic acquisitions and agreements undertaken by Lightower to service major metropolitan areas and to connect its fiber network up and down the Northeast. Company revenues have increased 20 percent in each of the last two years, and the workforce now eclipses 200, making Lightower one of the largest and most profitable metro fiber providers in the United States.
“We are pleased to add the NSTAR Communications network to our existing network in and around Boston, confirming our position as the leading fiber provider in the Northeast,” stated Rob Shanahan, CEO of Lightower. “This new enhanced network, including the core downtown Boston fiber asset, will enable us to capitalize on and accelerate company growth, and instantly provides Lightower with the ability to service more customers, more buildings and more routes.”
The agreement leverages two of the most extensive fiber networks in the Boston area and 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 significantly increases Lightower’s fiber backbone mileage as well as last-mile fiber access into commercial buildings throughout Boston and the surrounding communities.
Lightower’s current network is comprised of over 5,500 fiber route miles and access to over 2,100 commercial buildings, data centers, Telco hotels, and other critical interconnection facilities. Lightower’s footprint extends throughout Massachusetts, New Hampshire, Rhode Island, Connecticut, New Jersey, and New York, including Long Island and New York City. In addition, Lightower offers nationwide long haul services to Chicago, Washington D.C., Atlanta, Denver, Phoenix, San Diego, Los Angeles, San Francisco, and Sacramento.
Lightower Fiber Networks is backed by M/C Venture Partners, Pamlico Capital, and Ridgemont Equity Partners.
The agreement with NSTAR Communications and the expansion of its Boston metro networks follows five other major agreements and acquisitions by Lightower in just over three years. Most recently, Lightower completed the acquisition of Lexent Metro Connect and announced the acquisition of Open Access Inc., both of which expanded the company’s network and customer base in the greater New York City region. Earlier in 2010, Lightower acquired Veroxity Technology Partners. In 2008, Lightower acquired DataNet Communications and Keyspan Communications.
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.