Zayo Group, the Colorado-based fiber network operator, announced the acquisition of FiberNet Telecom Group on May 28, 2009. The price will be $11.45 per share for a total purchase price of just over $90 M, including net debt of $5 M.
Zayo Group is a regional provider of telecom services including bandwidth, voice and managed services to carrier, enterprise, SME and government clients. Zayo’s fiber network spans 129 markets in 23 states. Zayo Group is comprised of three complementary business units: Zayo Bandwidth, Zayo Enterprise Networks (formerly Zayo Manages Services) and Onvoy Voice Services.
FiberNet has been in business for 10 years and owns and operates integrated colocation facilities and transport routes in New York/New Jersey, Los Angeles, Chicago and Miami. Their customized connectivity infrastructure provides and advanced, high bandwidth, fiber optic solutions to support the demand for network capacity and to facilitate the interconnection of multiple customers’ and carriers’ networks.
Three months ago, Zayo raised $128 M with stated intention of spending it on Mergers & Acquisitions. The purchase of FiberNet will bring Zayo a strong presence in the New York area plus new relationships with wholesale customers that operate datacenters connected by FiberNet. The deal is expected to close sometime in the Q3 09.
NEF works closely with Zayo Bandwidth and Zayo Enterprise Networks to stay connected on changes and additions to their fiber optic routes and assets. NEF is committed to providing customers with optimal end-to-end solutions to meet their business connectivity needs. In addition to providing access to dark fiber networks, NEF is also connecting more and more enterprise customers and carriers with data center space and services. Ask us for more details.