Zayo Group (News - Alert), LLC, an international provider of fiber-based bandwidth infrastructure services and carrier-neutral colocation and interconnection services, recently announced its purchase of First Telecom Services, LLC (FTS (News - Alert)), a provider of bandwidth infrastructure services throughout the Northeastern and Midwestern United States, for a price of $110 million. Zayo now owns the fiber routes it had previously operated via long term indefeasible right of usage agreements. The Bank Street Group LLC served as exclusive financial advisor to FTS in connection with this transaction.
A subsidiary of First Communications (News - Alert), Inc., First Telecom Services, LLC owns and operates a fiber optic network of various route miles and fiber miles. It offers fiber network, wireless, fiber collocation, private network, and infrastructure services. The company serves telecommunications, financial, government, education, and healthcare markets. It provides its solutions in Ohio, Pennsylvania, New Jersey, New York, Maryland, Delaware, Michigan, and Washington.
"FTS strengthens Zayo's business both from a revenue and asset perspective," says Dan Caruso (News - Alert), president and CEO of Zayo Group. "In addition to important new customer relationships with First Communications and FirstEnergy, the acquisition provides new network reach that will further strengthen our ability to build end-to-end solutions for our customers in the Northeastern United States."
In related news, Zayo announced that it has executed a definitive agreement to purchase Litecast/Balticore, LLC, a provider of metro bandwidth infrastructure services in Baltimore, Maryland, for a price of $22 million. Litecast owns and operates the leading Baltimore metropolitan fiber network, connecting over 110 on-net buildings, including all of the city's major datacenters and carrier hotel facilities. Litecast is focused on providing dark fiber and Ethernet-based services to a concentrated set of Baltimore enterprise and governmental customers, particularly within the healthcare and education segments.
The acquisition will further enhance Zayo's fiber network in the greater Baltimore-Washington metropolitan area, complementing the recently acquired AboveNet and FiberGate networks in the Washington, D.C. and Northern Virginia area.
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Edited by Brooke Neuman