Zayo Group (News - Alert) has completed its acquisition of FiberGate, a metro area provider of dark fiber services. The $117 million acquisition was closed on August 31 and was funded from available cash. The acquisition adds 399 new route miles and 130,000 fiber miles in Washington, D.C., Northern Virginia, Baltimore, and suburban Maryland to Zayo's network. Zayo's international network now connects over 9,000 on-net buildings, spanning 64,100 route miles in seven countries, including 45 U.S. states and Washington, D.C.
FiberGate has been providing dark fiber services to the federal government, large enterprise and carrier customers for almost 17 years. The footprint includes over 315 buildings across 779 route miles including Baltimore, Howard, Montgomery, Prince Georges, and Frederick Counties in Maryland, Washington, D.C., and the City of Alexandria, Loudoun, Fairfax, and Arlington Counties in Northern Virginia. Zayo plans to continue to offer dark fiber and expand the service portfolio to include lit Bandwidth Infrastructure services like wavelengths, Ethernet, IP and SONET.
Dan Caruso (News - Alert), CEO of Zayo Group, said, "The FiberGate and Zayo networks are very complementary. As a result of the acquisition, we will have one of the most comprehensive fiber networks in the DC area of any provider."
Caruso added, "With FiberGate's focused product and customer set as well as excellent operations, we expect the integration to be completed quickly, making the combined footprint available to all of our customers immediately.”
Recently, Zayo Group was in news for announcing its plans to build a high bandwidth network in Albuquerque, New Mexico including fiber optic cable stretching from the South Valley to the foot of the Sandia Mountains. According to the company, the fiber build, which is in support of a 4G expansion for one of Zayo's wireless customers, will be 158 route miles of new network.
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Edited by Brooke Neuman