Lightower Fiber Networks' move to acquire Westford, Mass.-based Veroxity Technology Partners is yet another sign that much like the Tier 2 ILEC market, the competitive telecom industry is continuing down its own consolidation path.
By acquiring Veroxity, Lightower will be able to instantly expand its fiber network footprint and customer base in the lucrative Boston metro market as well as throughout New England and New York City. In addition, it will gain a national long haul network connecting to other major cities. With the acquisition, Lightower will add over 2,000 network route miles (including Massachusetts, Rhode Island, Connecticut and New York) to its current 4,500 network miles and increase its fiber connectivity into major data centers and 195 additional fiber-fed commercial buildings.
Complementing an expanded metro and local network footprint, Lightower customers will also be able to gain access into Veroxity's long-haul network facilities in key markets, including Chicago, Washington, D.C., Atlanta, Denver, Phoenix, Los Angeles, San Francisco, San Diego, and Sacramento.
Rob Shanahan, CEO of Lightower in an interview with FierceTelecom, said the purchase of Veroxity is a way to expand its capabilities in key Massachusetts, New Hampshire and New Jersey metro markets with complementary network and service assets.
"We have been having these discussions with Veroxity since around December," he said. "They are a great fit for us because they have more fiber assets in downtown Boston than we do and out around Route 128 in Bedford and Billerica and a great customer base in the city with a lot of financial institutions and health care."
But the purchase is not just about enhancing network connectivity alone. Lightower will enhance its Ethernet network services portfolio. "Probably forty five percent of Veroxity's business is Ethernet and that's about the same of the mix of the lit services we sell," Shanahan said. "We're seeing a lot of customers moving from SONET to Ethernet."
Although terms of the deal were not disclosed, Lightower said after it gains necessary regulatory approvals, the acquisition will be completed in Q3 2010.
For more:
- see the release here
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