Feb. 12, 2002 -- Network services provider Sphera Optical Networks filed for Chapter 11 bankruptcy protection Monday, and promptly sold its seven metropolitan fiber rings to Universal Access.
The asset sale is subject to approval by the U.S. Bankruptcy Court. The companies said they expected to complete the deal within 90 days.
Universal Access would double its network footprint with the addition of the metro rings in New York City, New Jersey, Washington D.C., Virginia, Dallas, Chicago, and Los Angeles.
The Sphera rings are already connected to the company's Universal Transport Exchange facilities.
Bob Rainone, chief operating officer of Universal Access, said the acquisition will improve the company's profit margins by allowing it to buy, rather than build, an expanded state-of-the-art network.
"This purchase is a natural progression for us due to the synergies between Universal Access and Sphera," said Rainone. "We have a fairly similar customer base and are extremely familiar with Sphera’s systems, ensuring that we are gaining quality customers and purchasing a top network."
"We believe that these actions will increase our ability to serve our existing customers with expeditious service of the highest quality," said Lance Boxer, President and CEO of Sphera. "Universal Access is committed to maintaining the excellent relationship with Sphera’s customers and ensuring no disruptions to their business operations."
Sphera, based in Edison, N.J., offers metro connections to businesses through an all-optical networks using DWDM (Dense Wavelength Division Multiplexing) switching technology.
Chicago-based Universal Access specializes in connectivity services, and maintains data center facilities and a database of network availability. Last week the company announced that it reported positive EBITDA cash flow in December expects to become profitable in the second quarter.