Lightpath to Acquire United Fiber & Data Assets

Rhea-AI Summary

Lightpath has signed a definitive agreement to acquire most of United Fiber and Data (UFD) assets. This acquisition includes a 323-route mile, high-fiber count network between New York City and Ashburn, VA, and a 79-route mile metro network in NYC and New Jersey. The deal, subject to regulatory approvals, is expected to close in Q3 2024. The acquisition will expand Lightpath's serviceable market in Manhattan by over 20%, connecting to 1,500 enterprise and data center destinations. The combined network will enhance high-capacity services and geographic diversity, benefiting Lightpath's enterprise, hyperscale, and wholesale customers. UFD customers will gain access to Lightpath's entire network and services.

Positive

• Acquisition of a 323-route mile high-fiber network enhances geographic diversity and capacity.
• Expansion of serviceable market in Manhattan by over 20%.
• Access to 1,500 enterprise and data center locations, a 5x increase in 3 years.
• Support for dark fiber, Ethernet, and wavelengths up to 800 Gbps.
• Enhanced network of over 20,000 route miles and 15,000 service locations.
• Increased capability to serve high-capacity customer needs in the Ashburn data center ecosystem.
• Access to Lightpath's entire service portfolio for UFD customers.

Negative

• Transaction subject to regulatory approvals, introducing uncertainty.
• Potential integration challenges with UFD's network and existing Lightpath infrastructure.

News Market Reaction

+0.41%

1 alert

+0.41% News Effect

On the day this news was published, ATUS gained 0.41%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Lightpath Will Add Geographically Diverse, High-Fiber Count Network Between New York City and Ashburn, VA, and Increase Serviceable Market in Manhattan by over 20%

NEW YORK, June 10, 2024 /PRNewswire/ -- Lightpath, an all-fiber, infrastructure-based connectivity provider revolutionizing how organizations connect to their digital destinations, announced the company has signed a definitive agreement to acquire substantially all of the assets of United Fiber and Data. The transaction is subject to regulatory approvals and is expected to close in the third quarter of 2024.   

United Fiber and Data (UFD) owns and operates a unique and diverse 323-route mile, high-fiber count network between New York City and Ashburn, VA, connecting the largest population center in the country with the largest data center and cloud ecosystem in the world. UFD also owns a 79-route mile metro network in New York City and New Jersey, including connectivity to over 350 enterprise and data center locations and a high-fiber count crossing of the Hudson River, which will add capacity to Lightpath's three existing Hudson River crossings. 

UFD's New York City-Ashburn network offers high-fiber counts, the latest optical technologies from Ciena, and will support dark fiber, Ethernet, and wavelengths up to 800 Gbps. This unique network is geographically diverse from typical long-haul routes along the I-95 corridor and will enhance Lightpath's network of over 20,000 route miles, connecting over 15,000 service locations, including over 140 data centers and 7 cable landing stations. The combination of networks will allow Lightpath to offer geographically diverse, high-capacity services from commercial enterprise buildings, cable landing stations, and data centers along the east coast, directly to the Ashburn ecosystem.     

"The addition United Fiber & Data is a natural extension of Lightpath's expansive Greater New York City Metropolitan fiber assets, increasing our ability to serve high-capacity customer needs into the Ashburn data center ecosystem and further enhancing our Manhattan metro coverage where we will serve nearly 1,500 enterprise and data center destinations, a 5x increase over the past 3 years," stated Chris Morley, CEO of Lightpath. "This represents a continuation of Lightpath's strategic investment thesis of creating critical fiber infrastructure in attractive and high growth markets for the benefit of our Enterprise, Hyperscale, and Wholesale customers."

UFD customers will gain access to the entire Lightpath network as well as the entire service portfolio, including Wavelengths, Ethernet, Internet, Private Networks, Dark Fiber, LP FlexNet, Voice, Security Solutions, and other Managed Services. Additionally, customers will be able to utilize Lightpath services to connect to over 140 data centers, 7 cable landing stations, and all major cloud providers.  

For more information about Lightpath, please visit lightpathfiber.com and follow us on LinkedIn.

About Lightpath:

Lightpath is revolutionizing how customers connect to their digital destinations by combining our next-generation network with our next-generation customer service. Lightpath's advanced fiber-optic network offers a comprehensive portfolio of custom-engineered connectivity solutions with unparalleled performance, reliability, and security. Our consultative customer service means we work with you to design, deliver, and support the solution for your unique needs, faster and more easily than ever before. For over 30 years, thousands of enterprises, governments, and educators have trusted Lightpath to power their organization's innovation. Altice USA (NYSE: ATUS) owns a 50.01% interest in Lightpath and Morgan Stanley Infrastructure Partners (MSIP) owns 49.99% of the Company.

To learn how Lightpath can connect you to your digital destinations, visit lightpathfiber.com

For media inquiries:
JSA for Lightpath
1-866-695-3629 ext. 13
jsa_lightpath@jsa.net

View original content to download multimedia:https://www.prnewswire.com/news-releases/lightpath-to-acquire-united-fiber--data-assets-302168344.html

SOURCE Lightpath

FAQ

What is the significance of Lightpath acquiring United Fiber and Data assets?

The acquisition will expand Lightpath's network and increase their serviceable market in Manhattan by over 20%, enhancing high-capacity services and geographic diversity.

When is the acquisition of United Fiber and Data by Lightpath expected to close?

The acquisition is expected to close in the third quarter of 2024, pending regulatory approvals.

How will Lightpath's acquisition of UFD assets affect their network capacity?

The acquisition will add a 323-route mile high-fiber network, enhancing capacity and geographic diversity, supporting services like dark fiber and wavelengths up to 800 Gbps.

How will the acquisition impact Lightpath's serviceable market in Manhattan?

Lightpath's serviceable market in Manhattan will increase by over 20%, connecting to nearly 1,500 enterprise and data center destinations.

What benefits will UFD customers gain from the acquisition by Lightpath?

UFD customers will gain access to Lightpath's entire network and service portfolio, including Wavelengths, Ethernet, Internet, Private Networks, and more.