Berkshire Partners LLC on Thursday disclosed plans to acquire
control of two of the largest U.S. fiber-network providers, merging
them in a deal that the private-equity firm said valued the
enlarged entity at more than $2 billion.
Lightower Fiber Networks and Sidera Networks would be merged in
a transaction led by Berkshire, creating one of the largest
providers of the infrastructure used by high-speed traders to
access financial exchanges, as well as companies and government
users of ultra-fast data transfer.
Lightower will be the surviving brand in a deal seen closing in
the second quarter of next year. The firm runs a 6,600-mile network
of fiber cables connecting 3,500 buildings, mainly in the U.S.
northeast.
Pamlico Capital, one of Lightower's main investors, will roll
back some of its equity in the firm but retain a stake in the new
entity.
Sidera is the data arm of cable provider RCN and has a large
presence in Chicago, the northeast and mid-Atlantic region. RCN was
taken private by Abry Partners LLC in 2010, and the buyout firm
will retain an undisclosed stake in the new Lightower.
Lightower Chief Executive Rob Shanahan, who would run the
combined company, said no antitrust issues were expected to arise
from the combination, which would operate a 20,000-mile network
connecting 6,000 locations.
Write to Doug Cameron at doug.cameron@dowjones.com.
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