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Another Deal for Switch and Data

Carrier Hotels Staff Posted Jan 19, 2004

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Switch and Data today has acquired Philadelphia-based colocation provider MeridianTelesis, the two companies said today.

The deal provides Switch and Data with more than 30 new customers as well as MeridianTelesis' 20,000 square foot facility in the Port of Technology Building on Market Street. Switch and Data already operates a data center at the 401 North Broad carrier hotel in Philadelphia.

The deal continues Switch and Data's pattern of growth through acquisition. Last March the Tampa-based provider Internet exchange operator bought PAIX from AboveNet for $40 million in a Chapter 11 deal.

It also continues the consolidation of colo space in the Northeast, following on the heels of FiberNet's purchase of Gateway Colocation. Both deals saw providers with larger networks buy regional providers that retrenched after expansion efforts.

"We believe this acquisition is going to be a great asset for Switch and Data," said Patricia Higgins, President and Chief Executive Officer, Switch and Data. "MeridianTelesis has a similar business philosophy, strong commitment to customer service and a broad customer base, which blends well with Switch and Data's strategy to expand its client base and enhance its service offerings in the enterprise sector."

"We are pleased with this acquisition," said Greg Peters, President and Chief Executive Officer, Internap Network Services Corporation. "We have had a relationship with Switch and Data and their management team for several years, and we're confident they will continue to provide the quality of support we require."

"Switch and Data is a profitable and financially stable company, poised to continue providing the superior level of service our customers are accustomed to receiving,"" stated David Taffet, President of MeridianTelesis.

Taffet, a former lawyer and investment banker, founded the company in 1998, focusing on the Philadelphia market. In 2002, MeridianTelesis saw an opportunity to expand Broadwing announced that it would consolidate its data center network. MeridianTelesis took over Broadwing data centers in New York, Dallas and Santa Clara, Calif in an arrangement that let Broadwing keep its network equipment at the facilities, while MeridianTelesis managed the colo operation.

By early 2003, following the loss of a single large customer, the agreement was discontinued and MeridianTelesis once again had a single facility.

Switch and Data provides neutral interconnection and colocation services to network centric enterprises and service providers.