Zayo Group (News - Alert) recently announced that it has signed a definitive agreement to acquire First Telecom Services for $110 million. The Zayo Group are specialist providers of fiber-based Bandwidth Infrastructure and network-neutral colocation and interconnection services.
In a statement, Dan Caruso (News - Alert), president, and CEO of Zayo Group, said that, “This transaction strengthens Zayo’s business both from a revenue and asset perspective. First and foremost, FTS (News - Alert) brings a strong and durable base of largely dark fiber revenue from a select group of strategic customers. Second, it secures Zayo’s control over some critical and unique regional fiber routes.”
First Telecom Services which is a provider of Bandwidth Infrastructure services across the northeastern and midwestern United States currently manages a network of 8,000 route miles of fiber and close to 500 on-net buildings. The company offers its customers across 11 states with dark fiber and wavelength services. Customers of FTS include leading telecommunications carriers who currently use the company’s extensive network.
With this acquisition, Zayo will successfully bring in new fiber routes within its services portfolio and will also be offered ownership of fiber routes which the company uses under long term indefeasible right of usage (IRU) agreements.
Zayo operates within the FTS region offering similar products to customers which will help in seamless integration of services and operations. The company is expecting FTS’ products and network footprint to completely integrate and be available to its customers by the time of closing which has been slated to be by year-end. The entire acquisition will be funded from cash on hand. The Bank Street Group was Fist Telecom Services’ exclusive financial advisor for this transaction.
Zayo Group currently serves a wide range of customers which include wireline and wireless carriers, data centers, Internet content and services companies, as well as high bandwidth enterprises.
Edited by Brooke Neuman