Lumos Networks acquiring three Charlotte data centers
Waynesboro-based Lumos Networks Corp. a fiber-based service provider, is acquiring Charlotte, N.C.-based DC74 Data Centers (DC74).
Under the terms of the agreement, Lumos will acquire DC74 for $23.5 million to $28.5 million, depending on future growth earn-out projections.
Founded in 2008, DC74 has 42,000 square feet of secure data center space at its three fiber-fed facilities in Charlotte. The company has been named to the Charlotte Business Journal list of the 50 fastest-growing private companies in the area for four consecutive years.
“Like Lumos, DC74 targets ‘large locals’ as customers, namely enterprises with strong local/regional presence and focuses on securing long-term contracts,” Timothy G. Biltz, the president and CEO of Lumos Networks, said in a statement. “This acquisition increases the number of Lumos operated co-location facilities to 10 and we look forward to continuing to add expertise and capabilities in this strategic data segment. Evidence strongly suggests that co-location services drive customer stickiness, wallet share and significant increases in bandwidth usage.”
The DC74 deal follows Lumos’ recent acquisition of Raleigh, N.C.-based Clarity Communications, which operates a 730-mile fiber network in four Southeastern states. Biltz said the transactions will increase the company’s annualized data revenue in the North Carolina market to more than $10 million.
“This represents a strong advancement towards reaching the scale necessary for Lumos to become a pure-play communications infrastructure bandwidth company,” he said.
Lumos Networks serves 24 markets in Virginia, Pennsylvania, West Virginia, Maryland, Ohio and Kentucky. It has a fiber network of 9,204 fiber route miles.