Zayo Group, a company that provides fiber-based bandwidth, voice, and managed services to carrier, enterprise, SME, and government customers, has acquired fellow bandwidth connectivity company AboveNet for approximately $2.2 billion, or $84.00 per share in cash (a 13% premium over AboveNet’s closing price on March 16). As part of the transaction, GTCR, a leading Chicago-based private equity firm, will make an equity investment in Zayo.
AboveNet, which traded on the New York Stock Exchange, provides high bandwidth connectivity for large corporate enterprises and communications carriers. Its private optical network delivers network and IP services in and among the U.S. and internationally AboveNet’s network is widely used in demanding markets such as financial services, media, health care, retail and government.
“Over the last 5 years Zayo has acquired a very impressive set of fiber infrastructure assets,” said Bill LaPerch, President and CEO of AboveNet in a release. “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.”
Zayo Group provides fiber-based bandwidth infrastructure and network-neutral colocation and interconnection services. Zayo serves wireline and wireless carriers, data centers, Internet content and services companies, high bandwidth enterprises as well as federal, state and local government agencies.
Zayo recently bought 360 Networks for $345 million.