Yahoo Finance Altice's (ATUS) Lightpath to Boost Connectivity With Buyout
Altice USA Inc. ATUS subsidiary Lightpath is set to significantly boost its service capabilities through the proposed acquisition of United Fiber and Data (“UFD”). The definitive agreement, expected to close in third-quarter 2024, pending regulatory approvals and other customary closing conditions, marks a strategic expansion that promises substantial benefits for Lightpath and its parent company, Altice.
UFD operates a unique 323-route mile high-fiber network stretching from New York City to Ashburn, VA, a critical link between the largest U.S. population center and the world's leading data center hub. Additionally, UFD’s 79-route mile metro network in New York City and New Jersey connects more than 350 enterprise and data center locations. This includes a high-fiber crossing of the Hudson River, enhancing Lightpath's existing infrastructure.
Integrating UFD's assets will provide several key advantages:
Network Expansion and Diversity: UFD’s geographically diverse network complements Lightpath's current infrastructure, expanding its network to more than 20,000 route miles and enhancing its connectivity with over 140 data centers and seven cable landing stations. This will allow Lightpath to offer more geographically diverse, high-capacity services across the East Coast, particularly benefiting high-demand areas like Manhattan and the Ashburn data ecosystem.
Technological Advancement: UFD's network features the latest optical technologies from Ciena, supporting dark fiber, Ethernet and wavelengths up to 800 Gbps. This technological edge will enable Lightpath to offer faster and more reliable services, catering to the growing needs of enterprise, hyperscale and wholesale customers.
Increased Market Reach: With the acquisition, Lightpath will significantly increase its enterprise and data center coverage in Manhattan nearly fivefold over the past three years. UFD’s customers will gain access to Lightpath’s comprehensive service portfolio, including Wavelengths, Ethernet, Internet, Private Networks and more, enhancing their connectivity options.
Enhanced Customer Solutions: Existing UFD customers will benefit from Lightpath’s extensive network and services, facilitating connections to major cloud providers and improving overall service quality and reliability. This expanded service capability is expected to attract more customers and increase market share.
Altice’s connectivity solutions stand to witness robust enhancement through Lightpath’s acquisition of UFD. The buyout not only expands Lightpath's network footprint and technological capabilities but also reinforces its position in high-growth markets, promising substantial benefits for both companies and their customers.
Altice has lost 15.4% over the past year against the industry’s rise of 46.6%.
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Zacks Rank & Key Picks
Altice carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Arista Networks, Inc. ANET, sporting a Zacks Rank #1 at present, is likely to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience. Arista has a long-term earnings growth expectation of 15.7% and delivered an earnings surprise of 15.4%, on average, in the trailing four quarters.
It holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed data center segment. Arista is increasingly gaining market traction in 200 and 400-gig high-performance switching products and remains well-positioned for healthy growth in data-driven cloud networking business with proactive platforms and predictive operations.
NVIDIA Corporation NVDA, currently flaunting a Zacks Rank #1, is another key pick in the broader industry. It is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit or GPU. Over the years, the company’s focus has evolved from PC graphics to AI-based solutions that now support high-performance computing, gaming and virtual reality platforms.
The company’s GPU platforms are playing major roles in developing multi-billion-dollar end-markets like robotics and self-driving vehicles. NVIDIA has a long-term earnings growth expectation of 30.9% and delivered an earnings surprise of 18.4%, on average, in the trailing four quarters.
Motorola Solutions, Inc. MSI, carrying a Zacks Rank #2 (Buy) at present, delivered an earnings surprise of 7.5%, on average, in the trailing four quarters. It has a long-term earnings growth expectation of 9.5%.
Motorola provides services and solutions to government segments and public safety programs, along with large enterprises and wireless infrastructure service providers. It develops and services both analog and digital two-way radio, voice and data communications products, and systems for private networks, wireless broadband systems and end-to-end enterprise mobility solutions to a wide range of enterprise markets.
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