The most recent movements in the mergers and acquisition market don’t have anything to do with tower purchases but with fiber optics.
Yesterday, we learned that ExteNet Systems plans to acquire MetroFiber d/b/a Axiom Fiber Networks, which is a telecommunications infrastructure services provider operating in the greater New York City metropolitan region. Before the acquisition, the company had 250 route miles in New York. It will be closing in on 2,000 small cell nodes in the area by the end of the year.
Crown Castle International, which has 50,000 small cells on the air or under development, intends to acquire LighTower (LTS Group Holdings) from Berkshire Partners, Pamlico Capital, for, which owns or has rights to approximately 32,000 route miles of fiber located primarily in top metro markets in the Northeast. The company will cost Crown $7.1 billion in cash, which it will finance, in part, by selling $1.73 billion in senior notes.
“With a fiber footprint after the transaction that will cover 23 of the top 25 most populous U.S. markets, Crown Castle is well-positioned to capitalize on the growing demand for mobile connectivity as network architecture continues to evolve and bandwidth demands continue to increase,” according to Crown Castle.
The transaction will double Crown Castle’s metro fiber footprint, resulting in it owning or having rights to 60,000 route miles of fiber, making it one of the largest owners of metro fiber in the United States.
The purchase of LighTower “significantly increases opportunities for small cell network deployments in top metro markets in the Northeast including Boston, New York, and Philadelphia,” according to Crown Castle.
CommScope to Acquire Cable Exchange
An example of the OEM market gearing up for the fiber-optic future in general and data centers in particular, CommScope plans to acquire Cable Exchange, a privately held quick-turn supplier of fiber optic and copper assemblies for data, voice and video communications.
Cable Exchange, headquartered in Santa Ana, California, manufactures a variety of fiber optic and copper cables, trunks and related products used in high-capacity data centers and other business enterprise applications.
“This highly complementary acquisition will deepen CommScope’s capabilities in supporting the growing market for high-capacity, multi-tenant data centers and hyperscale data centers operated by the world’s largest technology and retail companies,” CommScope said. “As more user-driven information and commerce flows through networks, operators are quickly deploying larger and more complex data centers to support growth in traffic and transactions.”
Remember, during the second-quarter of this year, Verizon announced fiber purchases from Corning and Prysmian Group in order to deliver new fiber services, including 5G, and supporting small-cell deployment.