Altice's (ATUS) Lightpath to Boost Connectivity With Buyout

Core Insights - Altice USA Inc.'s subsidiary Lightpath is acquiring United Fiber and Data (UFD) to enhance service capabilities, with the deal expected to close in Q3 2024, pending regulatory approvals [1] - UFD operates a 323-route mile high-fiber network connecting New York City to Ashburn, VA, and a 79-route mile metro network in New York City and New Jersey, which will strengthen Lightpath's infrastructure [1] Group 1: Network Expansion and Technological Advancement - The acquisition will expand Lightpath's network to over 20,000 route miles and improve connectivity with over 140 data centers and seven cable landing stations, particularly benefiting high-demand areas like Manhattan and Ashburn [2] - UFD's network utilizes advanced optical technologies from Ciena, supporting dark fiber, Ethernet, and wavelengths up to 800 Gbps, enabling Lightpath to provide faster and more reliable services [2] Group 2: Market Reach and Customer Solutions - Lightpath's enterprise and data center coverage in Manhattan will increase nearly fivefold, allowing UFD's customers to access a broader service portfolio, including Wavelengths, Ethernet, and Private Networks [3] - Existing UFD customers will benefit from enhanced connectivity to major cloud providers, improving service quality and reliability, which is expected to attract more customers and increase market share [3] Group 3: Overall Impact on Altice - The acquisition is anticipated to significantly enhance Altice's connectivity solutions, expanding Lightpath's network footprint and technological capabilities while reinforcing its position in high-growth markets [4] - Altice's stock performance has declined by 15.4% over the past year, contrasting with a 46.6% rise in the industry [4]