Printed from http://www.electronista.com

Berkshire Partners plans $2B fiber network merger

updated 01:33 pm EST, Thu December 27, 2012

Lightower Fiber Networks and Sidera to merge

Private equity firm Berskhire Partners announced today that it plans to acquire controlling shares the two largest fiber network providers in the United States, with the ultimate aim of merging the two firms. Lightower Fiber Networks and Sidera Networks are in Berkshire's sights, and the holding company values the merger of the two infrastructure providers at more than $2 billion. The resulting entity would operate a fiber network stretching 20,000 miles and connecting 6,000 locations.

According to The Wall Street Journal, the merger would see Lightower emerge as the surviving brand, with the deal closing in the second quarter of next year. The merger would yield one of the largest providers of fiber infrastructure.

Lightower currently operates a 6,600-mile network of fiber cables connecting 3,500 buildings, with the majority of those located in the northeastern United States. Sidera, meanwhile, is an arm of RCN, a cable provider owned by Abry Partners.

The merger of the two firms would see Lightower Chief Executive Rob Shanahan running the resulting entity. Shanahan expects no antitrust issues to stem from the transaction. Investors in the two fiber providers would likely retain their stakes in the companies, though those shares would likely be reduced somewhat. In addition to Berkshire, Pamlico Capital and Abry Partners would retain a stake in the future Lightower.



By Electronista Staff
toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

Plantronics Rig Surround 7.1 headset

Trying to capture the true soundscape of video games can be a daunting task. Looking to surround-sound home theater options, users hav ...

Kenu Airframe +

Simple, stylish and effective, the Kenu Aiframe + portable car mount is the latest addition to Kenu's lineup. Released earlier this ye ...

Adesso Compagno X Bluetooth keyboard

The shift from typing on physical keyboards to digital versions on smartphones and tablets hasn't been an easy for many consumers. Fro ...

Sponsor

toggle

Most Commented

 
toggle

Popular News