Lightower ambitious as it looks to close Fibertech deal
Lightower Fiber Networks of Boxborough will still be the second-largest provider of technology network services in the U.S. after its newly-announced acquisition of competitor Fibertech Networks closes in the third quarter of this year.
But Lightower CEO Rob Shanahan said Wednesday that the company will work to narrow the lead of its competitor and market leader, Zayo Group, which is based in Boulder, Colo., and has clients throughout the U.S. and Canada, as well as in Europe and Japan.
“Our desire and plan is to continue to grow,” said Shanahan, adding that Fibertech is an attractive purchase because it has been so successful in expanding its network. In the last two years, the Rochester, N.Y.-based company entered Ohio and Detroit. The Fibertech strategy, according to Shanahan, has been to land one “anchor tenant deal” with a major customer, which paves the way for continued growth in new markets.
“We like what we’ve seen as far as their growth profile,” Shanahan said.
Meanwhile, Lightower has experienced its own wave of organic growth. The company has added about 120 employees in the last two years, bringing its headcount to 500, and it’s the largest provider of broadband infrastructure in the Northeast and Mid-Atlantic regions. Following the Fibertech acquisition, Shanahan said it’s likely that Lightower will add staff at the Boxborough headquarters and elsewhere.
Fibertech’s headquarters will remain in Rochester, which will serve as the company’s hub for western operations, which include Indiana, Ohio and Detroit. Shanahan said that will fill an important gap for Lightower, which has operations in Chicago and New York but nothing in between.
Health care, education offer opportunity
Lightower is making the $1.9 billion deal at a time of vast opportunity, particularly in the health care and education sectors, Shanahan said. Hospitals and other health care providers are adopting electronic medical records systems and the necessary interconnectivity so they can share information with other providers. On th education side, President Obama two years ago announced plans and funding to increase broadband services to the nation’s public schools.
“There’s a natural expansion of data consumption that we’re in a position to take advantage of,” Shanahan said.
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