Lightower Announces Merger with Fibertech

Thursday, April 30, 2015 at 4:38PM
Jared Taylor in Deal Advisor, Deals: Fiber Network, Fibertech, Lightower Fiber Networks

On Monday, April 27^th, Lightower Fiber Networks announced that they have agreed to merge with Fibertech Networks.  The transaction is an all cash deal for $1.9 billion funded with a mixture of debt and equity and is expected to close in Q3 2015.  The merger will allow the two companies to serve more locations, while being able to offer more service options to customers. 

 Transaction Facts

• Lightower Fiber Networks is a leader in providing custom all-fiber and high-capacity network services.
• Lightower serves enterprise, government, carrier and data center customers.
• Fibertech Networks is a leading provider of fiber-optic based network services.
• Fibertech serves wireline and wireless carriers, data centers, large enterprises, and facilities in several industries.

Strategic Considerations

• Merged company will have approximately 32,000 fiber route miles connected to 5,000 wireless towers and 13,000 POPs. 
• Transaction provides a complementary network and geographic footprint. 
• Both companies offer fiber-based services such as Ethernet, dark fiber, wavelengths, Internet access, private networks and colocation services, which makes for a natural fit.
  

JSICA’s Take

• Win for customers, due to the fact that the combined company will be able to offer the same superior level of customer support and reliability as it has in the past, except in more locations.
• Merger creates a strong presence for the two companies in the Northeast and Mid-Atlantic.

Article originally appeared on JSI Capital Advisors (http://jsicapitaladvisors.com/).