Logix Communications is acquiring fellow Texas-based competitive provider Alpheus Communications from its current private equity owners—The Gores Group and Scott Widham—to deepen its reach in Texas’ desirable DASH (Dallas-Austin-San Antonio-Houston) market.
Financial details of the acquisition were not disclosed, but Logix expects to close the deal in the fourth quarter of 2017. SunTrust Robinson Humphrey will serve as lead arranger and bookrunner for the acquisition financing.
Similar to other acquisitions in the competitive fiber space, Logix’s focus is on scaling its fiber network.
By acquiring Alpheus, Logix will add 2,800 route miles of long-haul fiber and 1,900 route miles of metro fiber to its existing network.
Alpheus has also continued to enhance its network footprint and product portfolio. The service provider recently introduced flat-rate pricing for its carrier wavelength service line for its 13,000 on-net and near-net building locations.
Earlier, Alpheus spent $12 million to expand its fiber network to be closer to more than 3,000 near-net business locations to its network. The service provider is also making continued progress to expand its Ethernet over Copper (EoC) footprint to penetrate more buildings in the markets it serves.
Upon completing the acquisition, the combined company will serve over 12,300 enterprise and carrier customers with a complete portfolio of data, voice, managed and data center services.
“With an extensive fiber footprint in four of the fastest growing cities in the country—Houston, Dallas, Austin and San Antonio—Logix immediately becomes one of the largest fiber operators in Texas, offering superior local customer care and support to its clients,” said Matt Murphy, Logix’s interim CEO and partner at Astra Capital Management, in a release.
Logix itself is the product of acquisition, having been bought by Astra Capital Management in 2016.
On its own, Logix operates 1,000 route miles of metro fiber connecting about 2,500 buildings and 11,000 enterprises in seven markets across the Texas and Oklahoma region.
After spending time operating as a traditional CLEC and ISP, Logix has focused more of its efforts over the past five years on expanding its fiber footprint. This has enabled the service provider to bring additional enterprise and small- to medium-sized business customers onto its network.