FiberNet acquires Gateway Colocation

Metro fiber provider FiberNet Telecom Group announced Tuesday it has agreed to purchase the assets of Gateway Colocation, which operates a 49,000-square-foot communications hub and colocation facility at 165 Halsey St. in Newark, N.J. The facility is 60% occupied by more than 25 carriers, including FiberNet, which will purchase the assets with 2.9 million shares of its own stock (currently valued at about $3.8 million) and $170,000 in cash. As of Oct. 31, 2003, Gateway’s total assets were worth $5.1 million, and the company had earned $1.9 million in revenue since the beginning of the calendar year, according to FiberNet, whose executives expect the deal to close by the end of the month.