Data Center Connectivity Gets a Boost Heading into 2013 – Sidera and Lightower to Merge

- Ilissa Miller, CEO of iMiller Public Relations, says:

On December 27, 2012 Berkshire Partners, a Boston-based investment and management firm announced that it will acquire and merge Sidera Networks and Lightower Fiber Networks – two companies that operate and manage substantial networks throughout the Northeast, Mid-Atlantic and Midwest.

The definitive agreement was signed by Berkshire Partners with Pamilco Capital, a significant investor in Lightower and ABRY Partners, a significant investor in Sidera.  Since the two companies are being acquired, in essence simultaneously the deal is valued at over $2 billion.  

What Will the Combined Network Look Like?

Lightower’s current network reaches its most southern point in Princeton, NJ.  Combine their network with Sidera’s, customers will gain access to additional   diverse and ultra-low latency network connectivity that extends to the Washington, DC metro area including Ashburn, VA, as data centers in the region know – it’s the US-based media and content data hub.  Sidera’s network will also offer Lightower customers low latency connectivity to the Chicago/Aurora, IL financial exchange market as well as connections to the financial markets in Toronto, Canada and London, UK.

Sidera’s over 13,500 rout miles, combined with Lightower’s over 6,600 fiber route miles, will offer customers more than 20,000 route miles of network connectivity and provides access to more than 6,000 on-net locations, including commercial buildings, data centers, financial exchanges, content hubs and other critical interconnection facilities.

Data Center Connectivity

In 2012, Sidera Networks rolled out and executed against an aggressive strategy to connect as many data center and colocation facilities as possible.  As of the date of this announcement, Sidera interconnects over 125 data centers across its vast footprint.  Lightower’s footprint reaches approximately 64 data centers – with some over lap, it appears that Sidera’s network will provide the greatest reach to the ultimate combined entity. 

What does this mean for data center providers?  Not much more than a consolidation of suppliers.  Expect some redundancy and network optimization to take place as the companies evaluate the overlapping footprints of their networks.   The merger is expected to create an entirely new entity – so the administration aspect of your customer relationship may change. 

For more information about how this could affect your relationship with Sidera and/or Lightower, visit Sidera Networks’ FAQ page here: http://www.sidera.net/lightower-sidera-merger/frequently-asked-questions/.