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.
