Zayo Group (News - Alert), a privately owned national provider of fiber-based bandwidth infrastructure in Colorado, announced a definitive agreement to acquire Arialink, mid-Michigan's largest fiber optic service provider.
The $18 million acquisition, expected to finalize in the second quarter of 2012, will allow Zayo to add 930 route miles to its 45,000 mile national network. Arialink currently has 400 miles of dense metro networks in Ann Arbor and Lansing.
Glenn Russo, Executive Vice President of Corporate Strategy and Development for Zayo Group, stated that the deal will allow Zayo to expand its network while improving customer products.
“Arialink has built a great business by extending their fiber-based Ethernet network to key businesses and government agencies in Michigan,” said Russo. “We have worked with Arialink for some time and adding their reach to Zayo’s national network will allow us to offer a broader range of solutions to our collective customers.”
The transaction excludes assets and customers related to Arialink's residential services. That business is being spun out to the previous owners of Arialink before the expected closing.
Arialink CEO Jason Schreiber will join Zayo as part of the transaction, leveraging the companies' collective assets. “I believe the combination of Zayo and Arialink will create more opportunities to serve our customers as well as create career opportunities for many of our employees,” he said. “I am proud of what we have accomplished as an independent company and look forward to continuing our growth as part of Zayo.”
Zayo was named one of the Denver-area’s fastest growing private companies by the Denver Business Journal last summer. In a separate deal, Zayo announced on March 19th its intentions to acquire AboveNet, a bandwidth service provider operating a fiber network of about 13,000 in mostly metropolitan areas, for $2.2 billion. That deal is expected to close 2Q 2012.
Edited by Braden Becker