UFD agrees to sell virtually all of its assets, YDR Options

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United Fiber & Data agrees to sell virtually all of its assets to a New York company
Mike Argento
York Daily Record
June 11, 2024

United Fiber & Data, a York-based company formed by former members of the rock band Live to build a fiber-optic network in the northeast, has signed an agreement to sell its network, essentially all of it assets, to a New York-based company that operates a network of fiber optic lines that stretch from Boston to Chicago to Dallas and to Miami, according to a news release.

The company, Lightpath, will complete the deal for UFD's network in the third quarter of this year, according to the company's press release. The value of the deal was not disclosed in the release.

The release describes the deal as "a definitive agreement to acquire substantially all of the assets of United Fiber & Data."

What this means for UFD's future is unclear. The company did not immediately respond to requests for comment. The company, as well as other enterprises involving former Live members, has been beset with lawsuits and legal difficulties in the past few years. Its former CEO, Bill Hynes, is facing charges of stealing more than $4 million from the company.

UFD's project was touted as an economic bonanza, promising to create 300 jobs in York and generate billions in tax revenue while building a high-tech center in York, creating a kind of Silicon Valley centered in a formerly blighted neighborhood in the city’s heart. That never materialized.

Under the deal, according to the release, Lightpath will acquire UFD's 323-mile network connecting New York City to Ashburn, Virginia, and its 79-mile network in New York and New Jersey.

Lightpath's CEO, Chris Morley, was quoted in the news release saying, "The addition United Fiber & Data is a natural extension of Lightpath's expansive Greater New York City Metropolitan fiber assets, increasing our ability to serve high-capacity customer needs into the Ashburn data center ecosystem and further enhancing our Manhattan metro coverage where we will serve nearly 1,500 enterprise and data center destinations, a 5x increase over the past 3 years. This represents a continuation of Lightpath's strategic investment thesis of creating critical fiber infrastructure in attractive and high growth markets for the benefit of our Enterprise, Hyperscale, and Wholesale customers."

Lightpath did not immediately respond to queries for comment.

Chad Taylor, guitarist and founding member of UFD, said in a statement, that the "surprise exit can be awarded to the wide range of people who sacrificed and endeavored to build our disruptive data network - including our customers. The vision of our founders - when coupled with the executive team and staff - yielded a collective victory in an industry where start-ups fail at an extraordinary rate. Mission accomplished." Taylor also acknowledged the support the company received from the late Louis Appell Jr. and his family, who invested in UFD.

Lightpath is co-owned by Altice USA, a cable TV provider headquartered in New York which owns 50.01 percent of the company, and Morgan Stanley Infrastructure Partners, which owns the remainder.

https://www.ydr.com/story/news/2024/06/11/u...ve/74056746007/

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Deal in place to sell United Fiber & Data, tech firm founded by Live rock band members
Aimee Ambrose
York Dispatch
June 12, 2024

A New York-based tech company has its sights set on taking over United Fiber & Data, the tech firm founded by Live rock band members a decade ago that became embroiled in multiple controversies and lawsuits.

The deal would close a significant chapter — and possibly the whole book — on UFD. Initially, the company was hailed at its founding as a promising new economic development source and job creator for York.

Lightpath, a Bethpage, New York-based fiber network infrastructure company, signed an agreement to acquire “substantially all” of UFD’s assets in a deal set to close this autumn, according to an announcement made Tuesday.

Lightpath said the acquisition still has to meet approval by regulators.

The announcement did not state the value of the deal. Lightpath spokespeople did not respond to follow-up questions after the announcement.

UFD executives also didn’t respond to questions Wednesday, including about the value of the deal and whether the company would merge with Lightpath’s executive structure.

Lou Appell III, a UFD board member, said he couldn’t comment on the sale. His family has been the primary investor in UFD, starting with his father, late philanthropist Lou Appell Jr., since the company launched in 2012.

Chad Taylor, as a former member of rock band Live and one of UFD's founders, said the company's vision has been realized.

"I’m grateful to have worked alongside a team who pulled together to overcome a multitude of challenges - never giving up or losing hope. I wish them well. What a journey. They say it’s not how you start but how you finish. In this case, mission accomplished," he said in a statement.

Chad Gracey, another former member of Live and UFD founder, didn't immediately respond to a request for comment. Bill Hynes, a third founder, said he couldn’t comment publicly.

Data network: Lightpath’s release points to UFD’s data network as key to the acquisition, highlighting the 323-mile fiber optic infrastructure the company installed between New York City and Ashburn, Virginia, and running through York, along with another 79-mile network in Manhattan and New Jersey.

The move would bolster Lightpath’s existing network of 20,000 route miles, according to the release.

“The addition of United Fiber & Data is a natural extension of Lightpath’s expansive greater New York City metropolitan fiber assets, increasing our ability to serve high-capacity customer needs into the Ashburn data center ecosystem,” company CEO Chris Morley stated in the release.

UFD and York: UFD is believed to be currently headquartered around Allentown since leaving its original home at 210 York St. in York City. The building was sold to a new owner in late 2021.

The local address is the former Think Loud building, which was renovated to house UFD and the affiliated umbrella of Think Loud companies that Hynes, Taylor, Gracey and Patrick Dahlheimer, another founder and Live band member, were involved in.

Controversy plagued UFD several years after it launched.

Taylor, Gracey and Dahlheimer resigned to focus on music again. Hynes took over as CEO in 2015, according to court documents.

Hynes was then arrested in late 2019 in a domestic violence case, charges to which he later pleaded no contest.

He resigned from his role with the company.

A civil lawsuit, led by Appell, followed a year later, accusing Hynes of plundering funds from the company for personal use.

Theft charges: The lawsuit was settled in 2022. But Hynes was then hit with criminal theft charges in 2023 following a Pennsylvania State Police and FBI investigation into allegations brought by UFD executives.

Charging documents allege Hynes stole nearly $4.4 million while CEO. That included about $3 million that Appell alleged he loaned to Hynes to secure a state grant for the 210 York St. building renovation.

The loan went unpaid as Appell and investigators alleged Hynes moved the money into other company accounts, and the bulk was used to purchase the nearby Metso Minerals plant.

Hynes has asserted he’s innocent and that the Metso plant purchase was intended to serve UFD’s growth plans for building a data center as well as a tech and entertainment campus in that area around the Think Loud facility.

Hynes’ next court hearing is scheduled for July 25.

When Appell testified at Hynes’ preliminary district court hearing last November, he said he agreed to the civil settlement that preceded the criminal case while under duress to keep UFD from folding.

Appell said he expects the criminal case against Hynes will be separate from the UFD acquisition.

“His criminal case has no bearing on the sale,” he said Wednesday.

Lightpath: Lightpath, in its release, said UFD's current customers would gain access to its fiber network and service portfolio when the sale closes.

The company is a joint venture owned half by Altice USA, a New York City-based cable TV provider, and Morgan Stanley Infrastructure Partners.

https://www.yorkdispatch.com/story/news/loc...rs/74073195007/