Sizing up the deals:
Throughout 2010 and into the beginning of 2011, Massachusetts-based Lightower Fiber Services expanded its fiber footprint in the Northeast by acquiring three fiber network service providers in 2010: Lexent Metro Connect, Open Access Inc., and Veroxity.
Focusing primarily on large multi-site businesses in the Northeast U.S. with fiber-based services, Lightower has continued to drive the growth of its network since 2007
What's significant about these deals?
Focusing primarily on large multi-site businesses in the Northeast U.S. with fiber-based services, Lightower has continued to drive the growth of its network since 2007 after it bought out the former KeySpan Communications fiber subsidiary from National Grid and DataNet Communications.
Led by former Conversent Communications (now Earthlink) CEO and co-founder Rob Shanahan, Lightower's acquisitions add different pieces to the service provider's growing network puzzle.
First up is Veroxity. By acquiring Veroxity, Lightower not only gained 2,000 network route miles (including Massachusetts, Rhode Island, Connecticut and New York) and 195 additional fiber-fed commercial buildings, but also a national long haul network connecting to other major cities. Located in the Bedford, Mass. area, Veroxity will enhance Lightower's ability to target opportunities (financial companies and hospitals) along Route 128.
Focusing on opportunities in the New York and New Jersey areas was Lexent Metro Connect. With Lexent, Lightower added 150 route miles and over 200 commercial buildings in addition to expanding its low latency routes to serve the New York City and New Jersey financial exchanges and data center opportunities.
Rounding out its trio of acquisitions was Open Access New York City region, but also in Long Island. In Long Island, Open Access currently provides network services to area businesses with access to over 230 commercial buildings and data centers.
Complementing these acquisitions, Lightower struck a fiber lease agreement with NSTAR Communications, a subsidiary of energy company NSTAR (NYSE: NST) that will give it expanded metro fiber capacity in the Boston, Mass. area.
When asked recently what was driving the Rob Shanahan said in an interview with the Wall Street Journal that "There's a shortage of metro fiber, and the demand is just going through the roof" so it's responding to that trend by scaling its network reach.