Boston-based investment firm, Berkshire Partners, recently coughed up an impressive $2 billion to support one of the industry’s most significant mergers, giving birth to a new company that is likely to emerge as a major player in on-net and metro fiber space.
According to a news statement, Lightower Fiber Networks, Northeast’s major metro fiber and bandwidth provider, and Sidera Networks (News - Alert), the enterprise communication service provider, signed a definitive agreement to be acquired by Berkshire Partners.
The Boston-based firm will merge both companies to create a new corporate entity.
Although none of the three companies divulged the possible name for the new entity, it was revealed that the newly-combined company will be run by Rob Shanahan, Lightower's current CEO. Both Pamlico Capital and ABRY Partners, separately major investors in Lightower and Sidera, agreed to continue to inject funds to the new company.
The deal will be completed in Q2 this year, according to the account of the investment firm.
In a recent statement, Shanahan said the new company, which will operate a high-performance, fiber-based network throughout the Northeast, Mid-Atlantic and Midwest, will be able to offer the customers enhanced services, more routes and more connections to critical landing sites and exchanges internationally.
To be precise, customers will get access to over 20,000 route fiber miles and more than 6,000 on-net locations, including commercial buildings, data centers, financial exchanges, content hubs and other interconnection facilities.
In a nutshell, the combined entity will enjoy a broad reach and extended network. The merger brings the combined expertise of both companies, giving the new company a unique edge over its business rivals.
“Once merged, we will offer customers more services, more routes and more access options with the same high levels of performance, diversity, reliability and support that our customers have come to expect from us,” Shanahan noted.
The merger, though, is only a continuation of the investors’ efforts at consolidating regional competitive fiber-based service providers. M/C Partners and Pamlico Capital acquired Lightower from electric and gas utility specialists at the National Grid in August 2007, while RCN (News - Alert) Corp was acquired by ABRY Partners in March 2010, splitting the consumer and business divisions and re-launching RCN Metro as Sidera Networks.
Lightower also participated at Content & Communications World (CCW), held November 14-15, 2012, in New York City. The company featured its all-fiber Video Transport service, as well as its Ultimate Media Platform at the event.
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Edited by Braden Becker