Altice USA is selling a 49.99% of its Lightpath fibre enterprise business to Morgan Stanley Infrastructure Partners (MSIP) for an enterprise value of $3.2bn (€2.7bn).
Altice USA said it will receive $2.3bn in cash from the sale and related financing activity in the agreed deal which is expected to close in the fourth quarter of the year. Altice USA will retain a 50.01% interest in Lightpath.
Lightpath provides fibre, ethernet, data transport and internet related services to the business market in the New York metropolitan area. It currently has over 11,400 buildings connected to its fibre network.
Altice USA said the investment from MSIP will support ongoing and new growth initiatives at Lightpath.
Dexter Goei, CEO of Altice USA, said: “Lightpath is an expansive and best-in-class enterprise fibre communications business with tremendous long-term potential.
“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.”
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