Lightpath said Wednesday that it will expand its fiber network in western Connecticut with a 70-mile build that will connect two locations in the state -- Trumbull and Norwalk -- with Katonah, New York.

Lightpath provides fiber-based high-speed connections and services to businesses. Connecticut is home to 14 Fortune 500 companies participating in industries like advanced manufacturing, aerospace, bioscience, insurtech and medtech, according to Lightpath.

“Lightpath’s all-fiber fiber network offers organizations across all industries access to robust connectivity with the highest levels of flexibility, reliability and security,” Lightpath SVP of sales Doug Turtz said in a press release. “Lightpath continues to invest in Connecticut, as well as the greater New York City Metropolitan Area, as we have for over 30 years now. We are committed to enhancing our network and services for our existing customers, as well as continuing to bring Lightpath to new customers in more places.”

Lightpath is majority owned by Altice USA, which sold a 49.99% interest in the company to Morgan Stanley Infrastructure Partners in 2020 in a deal valued at $3.2 billion. According to Lightpath, the Connecticut expansion is part of an aggressive growth strategy and that over the past year it has:

●    Reached a milestone of 20,000+ route miles and 13,500+ service locations

●    Completed a 300-mile expansion from New York metro to Ashburn, VA

●    Finished a 54-mile network extension throughout Princeton, New Jersey

●    Built a 100-mile of state-of-the-art network across Queens, New York

The company also recently opened new offices in Midtown Manhattan and Boston. ■  

Shares in WideOpenWest were up as much as 17% in early trading Monday after reports surfaced that the company was in talks with Morgan Stanley Infrastructure Partners to be acquired.

WOW stock was priced as high as $21.69 per share (up 17% or $3.20 each) in early trading May 13. The stock was trading at $20.85 each before mid-day, up 13% or $2.36 each. This is the second time in about a month that WOW shares have risen in the double-digits — in April, the stock rose 12% after speculation arose that it had hired advisers to seek a possible buyer. 

According to Bloomberg News, citing unnamed sources, WOW and Morgan Stanley Infrastructure Partners, the private-equity infrastructure investment arm of the investment banker, have entered into exclusive talks. The Morgan Stanley unit is not a total stranger to the U.S. telecom business — in 2020 it purchased a 49.99% interest in Altice USA’s Lightpath fiber enterprise business in a deal with an implied enterprise value of about $3.2 billion. 

Officials at WOW declined comment. Representatives from Morgan Stanley Infrastructure Partners did not immediately respond to a request for comment.  

WOW is coming off the sale of five of its markets for a combined $1.786 billion to Astound Broadband and Breezeline (formerly Atlantic Broadband) and recently unveiled plans to beef up fiber network deployment and launch a wireless offering. Earlier this month the company said it would spend about $400 million on greenfield expansion of its fiber network through 2027.

On a conference call with analysts to discuss its Q1 results on May 9, WOW said it would launch its mobile service — via a partnership with Reach Mobile — in one of its southern markets later this month, followed by an enterprise-wide launch in Q3. ■

More than a month after finalizing a deal to sell a 49.99% interest in the company, Lightpath has named former Stonepeak Infrastructure Partners executive Chris Morley as its new CEO. 

Morley has more than 20 years experience in the telecom industry, most recently serving as  senior operating advisor for Stonepeak. Prior to that he spent nearly a decade at Zayo Group, serving in  various roles, including chief operating officer, where he led its fiber infrastructure, data center, enterprise networks, and transport service business segments.

 Morley will be joined on the Lightpath leadership team by Doug Dalissandro, formerly the chief revenue officer for Lightower Fiber Networks, and David Mayer, formerly the general counsel and executive vice president of business development for Lightower. Dalissandro will become Lightpath’s chief revenue officer while Mayer will be chief strategy officer for the company. 

“Lightpath has a rich and successful history of providing advanced communications services in the greater New York metropolitan area, and I’m excited to partner with Altice USA and MSIP to invest in and grow the business,” Morley said in a press release. “Leveraging our shared experiences from Lightpath, Lightower and Zayo, coupled with the extensiveness of the company’s fiber infrastructure network create a unique and relevant platform to the benefit and enablement of our customers.”

Lightpath completed the sale of a 49.99% stake in the company to Morgan Stanley Infrastructure Partners in December, in a deal with an implied enterprise value of $3.2 billion.  The telecom company is controlled by Altice USA, which holds a 50.1% interest in Lightpath. 

Before selecting Morgan Stanley as its partner, Altice USA had been in talks with Stonepeak to buy the Lightpath stake, but those talks broke down. Stonepeak later purchased Astound Broadband, which includes RCN, Grande Communications and Wave Broadband, from TPG for $8.1 billion. 

“Chris is a talented leader within the commercial communications industry with a proven track record of delivering exceptional value and results, and both Altice USA and MSIP are pleased to have him onboard to lead Lightpath as we embark on this new partnership,” Altice USA CEO Dexter Goei said in a press release. “I am confident that Chris, along with Doug and David, have the experience needed to help Lightpath realize its full potential as one of the leading enterprise and wholesale connectivity providers in the nation.”

Altice USA said it has completed the sale of a 49.99% interest in its Lightpath fiber enterprise business to Morgan Stanley Infrastructure Partners, in a deal with an implied enterprise value of $3.2 billion. Altice USA will retain a 50.01% interest in Lightpath and maintain control of the company.

Altice USA first announced the Morgan Stanley deal in July. It had been looking for a buyer for the Lightpath division for more than a year. 

“We are pleased to have closed this transaction and partner with Morgan Stanley Infrastructure Partners to support ongoing and new growth initiatives, improve operational performance and provide strategic and financial flexibility for Lightpath,” Altice USA CEO Dexter Goei said in a press release. “This partnership enables us to focus on distinct opportunities for value creation and long-term growth for Lightpath while continuing to provide best-in-class products and services to enterprise customers.”

When it first announced the deal, Altice USA said it represented a 14.6 times multiple to its 2019 adjusted EBITDA, and that it would receive total gross cash proceeds of $2.3 billion from the sale and related financing activity (about $1.1 billion after tax and initial debt repayment). 

Goldman Sachs & Co. LLC acted as financial advisor to Altice USA. Shearman & Sterling LLP, Mayer Brown LLP and Ropes & Gray LLP served as legal advisors to Altice USA. Evercore acted as financial advisor and Simpson Thacher & Bartlett LLP served as legal advisor to Morgan Stanley Infrastructure Partners.

Altice USA said Tuesday it has reached an agreement to sell a 49.99% interest in its Lightpath business telecom unit to Morgan Stanley Infrastructure Partners in a deal with an implied enterprise value of $3.2 billion. 

Altice USA has been shopping the Lightpath unit for more than a year. The fiber-based enterprise business services company offers telecom services to medium and large-sized businesses in the New York metropolitan area. Lightpath customers include health care, financial, education, legal and professional services companies, as well as the public sector and communication providers and local exchange carriers. 

Altice USA was in talks last July to sell a minority stake in Lightpath to New York private equity firm Stonepeak Infrastructure Partners, but those negotiations broke down.  It is unclear when Morgan Stanley stepped in, but Altice USA said it expects the deal to close in the fourth quarter.

Morgan Stanley Infrastructure Partners was founded in 2006 and has made 30 investments across three global funds with more than $13 billion of capital commitments. Its investors include some of the largest pension, sovereign wealth and insurance companies in the world.

Altice USA said the sale represents a 14.6 times multiple to its 2019 adjusted earnings before interest taxes depreciation and amortization (EBITDA). As part of the deal, Altice USA will receive total gross cash proceeds of $2.3 billion from the sale and related financing activity (about $1.1 billion after tax and initial debt repayment). Altice USA also will retain a 50.01% interest in Lightpath and maintain control of the company.

Altice USA said that as a strategic investor, MSIP will help support ongoing and new growth initiatives at Lightpath, improve the unit’s operational performance and provide strategic and financial flexibility.

“Lightpath is an expansive and best-in-class enterprise fiber communications business with tremendous long-term potential,” Altice USA CEO Dexter Goei said in a press release. “Bringing in a strategic investor allows Altice USA to focus on operating our core businesses while infusing the capital needed to grow Lightpath and maximize shareholder value. We are pleased to partner with MSIP, a leading investor in telecommunications infrastructure with deep operational and management expertise, to propel Lightpath and unlock its future potential.”

Goldman Sachs & Co. LLC acted as financial advisor to Altice USA. Shearman & Sterling LLP, Mayer Brown LLP and Ropes & Gray LLP served as legal advisors to Altice USA. Evercore acted as financial advisor and Simpson Thacher & Bartlett LLP served as legal advisor to Morgan Stanley Infrastructure Partners.