Lightower, Sidera Merge in $2B Deal
BOXBOROUGH, Mass. -- Lightower Fiber Networks, the premier metro fiber and bandwidth provider in the Northeast, and Sidera Networks, the leading provider of tailored, high-capacity communications services to large enterprise, carrier and data center customers, announced that they have signed a definitive agreement for a transaction valued at over $2 billion led by Berkshire Partners, a Boston-based investment firm, and management, to acquire and merge both companies. M/C Partners and Pamlico Capital acquired Lightower from National Grid plc in August 2007. Pamlico Capital, a significant Lightower investor, and ABRY Partners, a significant Sidera investor, will remain as investors in the new company. The combined company will be led by current Lightower CEO, Rob Shanahan. The merger is pending regulatory approval and is expected to close in the second quarter of 2013.
Following the merger, the combined company will operate a high-performance, fiber-based network throughout the Northeast, Mid-Atlantic and Midwest, with connections to critical landing sites and exchanges internationally. The combined network will offer customers over 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.
The merger of the two networks accelerates the strategies of both companies to provide best-in-class, fiber-based networking solutions to enterprise, carrier and government customers. The combined company will provide customers with enhanced access to a unique, diverse and dense high-performance network that can serve the most demanding application requirements. The combined network will have both a larger footprint and greater density throughout the Northeast, Midwest and Mid-Atlantic regions, while dramatically increasing the number of data centers, financial exchanges and interconnection facilities that are served with fiber-based access.
Lightower and Sidera both currently offer fiber-based networking solutions comprised of Ethernet, dark fiber, wavelengths, Internet access, private networks and colocation services. Both companies also offer industry-specific solutions 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.
Additional terms of the deal were not disclosed.
Current Lightower Fiber Networks investors include M/C Partners, Pamlico Capital and Ridgemont Equity Partners. Current Sidera Networks investors include ABRY Partners and Spectrum Equity Investors.
Sidera Networks Inc.
Lightower Fiber Networks