Fiber-based service provider Lumos Networks Corp. (NASDAQ: LMOS) has signed and closed a transaction to acquire Charlotte, North Carolina-based DC74 Data Centers (“DC74”), the company said.
Lumos will acquire DC74 for a total cash consideration of USD 23.5 -USD 28.5m, depending on future growth earn-out projections, implying a multiple of approximately 8-10x adjusted EBITDA in 2016.
Lumos Networks provides services in the Mid-Atlantic region serving carrier, enterprise and data center customers, offering end-to-end connectivity in 24 markets in Virginia, Pennsylvania, West Virginia, Maryland, Ohio and Kentucky. With a fiber network of 9,204 fiber route miles and 475,507 total fiber strand miles, Lumos Networks connects 1,297 unique Fiber to the Cell sites, 1,642 total FTTC connections, 36 data centers, 1,984 on-net buildings and approximately 3,300 total on-net locations.
Founded in 2008, DC74 provides high quality co-location, disaster recovery, managed services and managed hosting at its three fiber-fed facilities in Charlotte.