Lightower Fiber Networks, a provider of metro fiber and bandwidth in the Northeast, will be soon merging with Sidera Networks (News - Alert), a provider of tailored, high-capacity communications services to large enterprise, carrier and data center customers.
Both companies recently signed a definitive agreement worth more than USD $2 billion led by Berkshire Partners, a Boston-based investment firm. Currently, the merger between Lightower and Sidera is pending regulatory approval and is expected to close in the second quarter of 2013.
Both Lightower and Sidera currently offer fiber-based networking solutions comprised of Ethernet, dark fiber, wavelengths, Internet access, private networks and colocation services.
In addition, both companies currently deliver industry-specific solutions as well such as ultra-low latency connections for financial services firms, video transport for media companies, wireless backhaul for wireless operators, as well as diverse cloud, content and data center connectivity.
Following the merger, the combined company:
- Will be led by current Lightower CEO, Rob Shanahan
- Will operate a combined high-performance, fiber-based network throughout the Northeast, Mid-Atlantic and Midwest, with connections to critical landing sites and exchanges internationally
- Will provide customers with enhanced access to the unique, diverse and dense high-performance network, which will have a larger footprint and greater density throughout the operating regions.
- Will deliver customers with the combined network that can deliver more than 20,000 route miles and provide access to more than 6,000 on-net locations, including commercial buildings, data centers, financial exchanges, content hubs and other critical interconnection facilities.
As quoted in a statement, this merger will accelerate the strategies of both companies to provide enhanced, fiber-based networking solutions to enterprise, carrier and government customers.
Pamlico Capital, a key investor of Lightower, and ABRY Partners, a key investor of Sidera, will remain as investors in the new company. M/C Partners and Pamlico Capital acquired Lightower from National Grid plc in August 2007.
Rob Shanahan, CEO of Lightower, explained in a statement, "Both companies have a shared vision of network excellence, customized solutions and superior customer support. 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."
Randy Peeler, MD of Berkshire, added in said statement, "We have invested in the telecommunications infrastructure space for nearly 20 years and believe that the combined company, with its incredibly robust network, is well positioned for continued growth serving customers with an ever-increasing need for high-performance bandwidth."
Additional terms and conditions of the deal were undisclosed.
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Edited by Allison Boccamazzo