Berkshire Partners Buys Fiber-Network Providers

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 [e-mail].

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