Northeast and Mid-Atlantic network operators Lightower Fiber Networks and Fibertech Networks announced a merger agreement, valued at $1.9 billion. The combined company will be led by Lightower CEO Rob Shanahan and have over 30,000 combined fiber route miles in the Northeast, Mid-Atlantic, and Midwest.
Serving industries such as financial services, healthcare, government, media, wireless and wireline carriers the combined company will be able to provide access at almost 13,000 on-net service locations in commercial buildings and data centers.
The company will retain Lightower financial backers Berkshire Partners, Pamlico Capital, and ABRY Partners. ABRY and Berkshire also own data center company Telx, and are reportedly exploring a sale for that company.
Having a complimentary networks and geographic footprints and a similar set of network and fiber services, the two companies also offer consulting and colocation services. Lightower acquired Chicago colocation company ColocationZone last month.
Shanahan noted that the merger enables the company "to serve more locations, across a wider area, and with more service options – all with the same superior level of reliability and customer support. Lightower and Fibertech have built distinct networks in their respective regions that will be very complementary when merged. In addition, we plan to continue to invest capital in these regions for additional network expansion."