Another fiber M&A has landed, this time down in Texas. According to an announcement today, Logix Communications has signed a definitive agreement to buy Alpheus.
Logix itself was bought a year and a half ago by the private equity group Astra Capital Management, which clearly has plans for a larger consolidation. They are acquiring Alpheus Communications from The Gores Group and Scott Widham, the company's current CEO whom we interviewed here also in 2015. Alpheus operates some 3,000 route miles of intercity fiber and another 3,000 route miles of metro fiber, some of which Logix was probably already using. Those metro markets are the DASH cities of Dallas, Austin, San Antonio, and Houston, plus Corpus Christi.
Logix also operates a substantial metro footprint in the DASH markets, and the combined company will serve some 12,300 enterprise and carrier customers. There will certainly be some synergies there, both in network expense and headcount.
I'd heard a rumor about this deal, but hadn't been able to pin it down yet. Financial details were not disclosed, but the deal should be closing in the fourth quarter of 2017.
I wonder what Astra and Logix have in mind for an encore? FiberLight has a whole pile of Texas fiber as well, although that would be deal of another magnitude.