Lightower of Boxborough acquires New York rival
Lightower Fiber Networks of Boxborough is buying a Rochester, N.Y.-based competitor.
Lightower, a technology network services provider, and Fibertech Networks announced the all-cash agreement Monday. The sale is valued at $1.9 billion.
The deal is expected to close in the third quarter, pending regulatory approvals. It will expand Lightower's reach throughout the Northeast, growing its service locations to almost 13,000 sites, including commercial buildings, data centers, financial exchanges, content hubs and other communications facilities.
The combined company will be led by Lightower CEO Rob Shanahan, the firms announced.
“The combination of Lightower and Fibertech is a win for customers by enabling us to serve more locations, across a wider area, and with more service options,” Shanahan said in a statement. “Lightower and Fibertech have built distinct networks in their respective regions that will be very complementary.”
Shanahan said Lightower will continue to make capital investments to expand in the regions where the combined company will operate.
“This merger between our two high growth companies is a very positive development for bothorganizations, both customer bases and both sets of employees,” Fibertech CEO John Purcell said in the statement. “Bringing together these two talented teams under an integrated leadership group will be a great cultural fit, while also broadening opportunities and career growth for employees.”
Lightower said it will pay for the deal through a combination of equity and debt. It said its current financial backers, Berkshire Partners, Pamlico Capital and ABRY Partners, will each provide additional equity to support the transaction.
Two years ago, Lightower announced a similar deal involving Sidera Networks, of New York City. That was valued at about $2 billion.
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