Zayo to Acquire AboveNet for $2.2 Billion

Zayo agreed to acquire AboveNet for approximately $2.2 billion, or $84.00 per share in cash, representing a 13% premium over AboveNet’s previous closing price.


Zayo’s network assets already include over 45,000 fiber route miles, covering 42 states plus Washington D.C. Additionally, Zayo has approximately 5,200 buildings and 2,300 cell towers on-net, and over 94,000 square feet of billable colocation space.


AboveNet operates a private, optical network delivering metro access, long haul services, and IP transit (Tier I IP provider) in and among top U.S. and European markets. Its network spans 2.3 million fiber miles with 2,800 buildings on-net.


The deal adds to Zayo's streak of acquisitions, which have included: MarquisNet(Las Vegas data center), 360networks, American Fiber Systems, AGL Networks, FiberNet Telecom Group, NTI, Citynet Fiber Network, Memphis Networx, PPL Telcom, Indiana Fiber Works, Onvoy, VoicePipe, Columbia Fiber Solutions and 5 CenturyTel CLEC markets.


"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, President and CEO of Zayo Group. “We have admired AboveNet's business model and results and believe the combination will create value for customers, employees and investors."


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 addition to GTCR’s new investment, Charlesbank Capital Partners, a current Zayo investor, will make an additional investment in the company.


The definitive agreement contains a 30-day "go-shop" provision, whereby AboveNet has the right to solicit and enter into discussions with respect to alternative acquisition proposals.
http://www.zayo.com
http://www.above.netIn December 2011, Zayo completed its previously announced acquisition of 360networks. This deal added 360networks' 18,500 route miles of metro and intercity fiber to Zayo's network, interconnecting 73 markets across the central and western United States, including 24 existing Zayo fiber markets. In addition to its intercity network, 360networks operates metropolitan fiber networks across 25 markets. The acquisition also provides Zayo access to a number of new markets including Albuquerque, Bismarck, Des Moines, San Diego, San Francisco and Tucson.