Lightower Has Appetite For Acquisitions
One way to get rid of the competition is to buy it up. That seems to be the philosophy at Boxborough-based Lightower Fiber Networks, which has acquired five companies in the last three years, including three in the last six months.
"We've been growing pretty well," said Rob Shanahan, president and CEO of Lightower. "We've been looking to buy companies that either fill gaps in what we have, or basically take out the competition in areas where we are."
The company manages an expansive, 5,500-mile fiber optic cable network infrastructure that serves Massachusetts, Connecticut and many parts of New York, including Manhattan.
To fuel the growth the privately-held company has recently secured $230 million in new financing.
Buying Spree
A look at the press releases on the company's website shows the progression of companies and network extensions Lightower has completed in recent years. For example, in March, 2007, the company had a mere 1,100 fiber optic route miles and announced that its network would expand nearly three-fold with the acquisition of DataNet Communications in Newburg, N.Y. That same year Lightower purchased Keyspan Communications, which serves Manhattan and Long Island.
During the next two years the company expanded its Massachusetts and New Hampshire footprint by building out its own fiber-optic network.
Then, in mid-2010 the company began a string of acquisitions beginning with Veroxity Technology Partners based in Westford followed by Lexent MetroConnect and Open Access, both of New York.
Lightower's acquisition appetite is not quenched.
"We'll continue to look for acquisition opportunities," Shanahan said. "We'd like to expand our footprint down the mid-Atlantic, into Philadelphia and Washington D.C."
He said when evaluating options for expansion, Lightower officials evaluate the market and determine if it makes more sense to build out the company's network, or, if there are already competitors serving that market, then make an attempt to acquire the company.
Shanahan said another reason for the wave of acquisitions in the latter part of the year has been a convergence in the market. Many businesses, he said, have been unsure about federal tax regulations changing and possibly impacting the cost of making transactions, so there was an incentive to gets deals done quickly. As 2011 rolls along, he expects the acquisition market to slow slightly.
WBJ Web Partners
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