Northeastern regional fiber operator Lightower is taking consolidation into its own hands, and will today announce the purchase of Veroxity Technology Partners. [edit: here's the PR] The news began to break yesterday with an anonymous comment posted here in Telecom Ramblings which has turned out to be right on target. Strategically, Lightower's move is a rather easy one to justify, as the network assets are quite complementary.
The Veroxity purchase will add some 2000 route miles to Lightower's total footprint, with the most important parts being the metro fiber loops in central Boston and around the 128 corridor and in Connecticut. Both fill in holes in Lightower's New England coverage, giving them a more comprehensive portfolio throughout the region. In addition to the fiber itself, the purchase will add some 190 on-net buildings to Lightower's total, bringing the company close to the 2K mark. There is also a national longhaul ring which I am curious what they might do with down the line.
In terms of customer focus, Veroxity tends toward the enterprise space especially in the financial vertical. That fits well with Lightower's moves of late, which have been expanding its traditional wholesale focus to include large financial and enterprise customers.
Financial details were not disclosed, and since both companies are privately held I expected nothing less. However, I'd be interested if anyone out there has heard what sort of EBITDA multiple Veroxity sold for.
Is Lightower done or are there more acquisitions to come? There are several more fiber properties in the region that are known to be for sale, including Fibertech and NSTAR, and with RCN Metro falling into the hands of private equity nearly all the competitive fiber in New England seems to be up for grabs this year.
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