Zayo Group (News - Alert), LLC, a national provider of fiber-based bandwidth infrastructure and network-neutral colocation and interconnection services, is all set to acquire AboveNet for approximately $2.2 billion. The transaction, subject to customary approvals, is expected to close in mid 2012, the company said.
"AboveNet and Zayo's business models are closely aligned with a disciplined focus on high bandwidth fiber-based communications services for enterprises, government and carrier customers," said Dan Caruso (News - Alert), president and CEO of Zayo Group, in a company statement.
"We have admired AboveNet's business model and results and believe the combination will create value for customers, employees and investors," said Caruso.
Bill LaPerch, president and CEO of AboveNet said that over the last 5 years Zayo has acquired a very impressive set of fiber infrastructure assets.
LaPerch said that the combination of AboveNet's and Zayo's assets creates a dense fiber footprint throughout North America and Europe for a bandwidth hungry world.
“This new company will be uniquely qualified to meet the expanding needs of enterprise and carrier customers," he commented in the company statement.
AboveNet, Inc. is a leading provider of high bandwidth connectivity solutions for businesses and carriers.
As part of the transaction, GTCR, a leading Chicago-based private equity firm, will make an equity investment in Zayo.
"We have been looking for opportunities to make investments in the bandwidth infrastructure space and believe the exceptional leadership and assets of the combined company creates an excellent opportunity for our firm," said Phil Canfield, principal at GTCR, in the statement.
In addition to GTCR's new investment, Charlesbank Capital Partners, a current Zayo investor, will make an additional investment in the company.
TMCnet in January reported that Zayo Group has been selected by Meridian Joint School District in Idaho for its fiber network to the entire school.
Meridian Joint School District, which currently serves over 35,000 students and more than 2,500 employees, plans to make use of 100 megabit Ethernet service from Zayo Group, for its forty-nine schools and administration buildings.
Edited by Chris Freeburn