On December 14th, 2012, Zayo Group (News - Alert) announced its plans to purchase Litecast/Balticore, Baltimore-based provider of metro Bandwidth Infrastructure services. The purchase was made for a price of $22 million, and the acquisition has been officially completed as of Wednesday.
The transaction was reportedly funded with cash on hand, and contributes to Zayo’s growing network of dark fiber and Ethernet services focused in the Baltimore-Washington region. Now the company can move forward with its expansion in the region.
“The Litecast acquisition further strengthens Zayo’s fiber presence in the increasingly important Baltimore-Washington metropolitan market,” said Zayo Group’s president and CEO Dan Caruso (News - Alert).
The benefits Zayo will see from the acquisition of Litecast/Balticore are substantial.
The company already owns AboveNet and FiberGate, two networks located in the Washington D.C. and Northern Virginia area, so this latest addition will further expand Zayo’s fiber network in the region, making it the leading provider there.
“By combing the former AboveNet, FiberGate and Litecast networks, Zayo has the premier fiber assets in the mid-Atlantic region,” Caruso added.
Litecast will bring over 110 on-net buildings to the table, which include all of Baltimore’s major data centers, as well as every carrier hotel facility in the city.
Previous to Zayo’s purchase, Litecast focused its business on a range of Baltimore customers in the healthcare and education city sectors, including those in enterprise and government.
With the acquisition of Litecast/Balticore, Zayo has enabled Litecast customers to have access to Zayo’s suite of Bandwidth Infrastructure products, which span across the network’s regional, national and international fiber networks.
Zayo also has plans to offer Baltimore fiber-based services, available to the company’s customer base of wireless and wireline carriers.
The integration of Zayo with Litecast/Balticore is already underway, and since the company is concentrated in one area, many of the steps toward full integration have already been completed.
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Edited by Brooke Neuman