Switch and Data Buys RACO

Almost exactly a year after announcing plans to buy PAIX, Switch and Data has completed the acquisition of Remote Access Company (RACO), a privately-held company providing neutral colocation services for the service provider and enterprise markets.

Through the RACO deal Switch and Data, the leading neutral interconnection, Internet exchange and colocation provider, expands its footprint to include RACO’s four sites located in New York City, Toronto, Chicago and Buffalo.

The New York City facility is located at 60 Hudson St., one of the premier carrier hotels in the United States. RACO generated $8.3 million in revenue in 2003. This transaction extends Switch and Data’s customer base to more than 650 customers.

"This acquisition is another step forward in our expansion strategy. We have significantly broadened our client base and established a presence at 60 Hudson St. in New York and 151 Front St. in Toronto,” says Keith Olsen, president and CEO. “This transaction will enhance Switch and Data’s financial position. We are tremendously pleased with this acquisition.”

In addition to an expanded customer base and a strengthened facility portfolio, Switch and Data will add 24 employees and expects to benefit from the industry expertise of RACO founder Peter Ronca. Ronca will manage Switch and Data’s customer service department as vice president of customer support.

In March of last year, Switch and Data announced plans to acquire PAIX.net for $40 million. PAIX, formally a part of Metromedia Fiber Network Inc., had managed facilities where companies swap Internet traffic in six cities: Atlanta, Dallas, New York, Palo Alto, Calif., Seattle and Vienna, Va. At the time, PAIX represented a new business venture for Switch and Data, which had traditionally played the role of a telecom landlord across the country. PAIX facilities were hubs for swapping Internet traffic and monitoring associated network quality metrics, such as packet delays.

Share this article: Email, Slashdot, Digg, Del.icio.us, Yahoo!MyWeb, Windows Live Favorites, Furl
Add this article feed to: RSS, My Yahoo, Newsgator, Bloglines