Private investors to acquire Zayo for $14.3 billion in cash

Affiliates of Digital Colony Partners and the EQT Infrastructure IV fund will acquire Zayo Group Holdings for $35.00 in cash per share of Zayo's common stock in a transaction valued at $14.3 billion, including the assumption of $5.9 billion of Zayo’s net debt obligations. The offer price represents a 32% premium to the volume-weighted price average of the last six months of $26.44.

The Zayo Board of Directors said the sale of the company to Digital Colony and EQT Infrastructure is in the best interest of Zayo and all its stakeholders, as it delivers immediate and substantial value to shareholders, will strengthen Zayo’s financial flexibility, enabling the company to increase investments and better position itself for long-term growth and profitability.

The companies hope to conclude the deal by the first half of 2020.

Marc Ganzi, Managing Partner of Digital Colony, said, “Zayo has a world-class digital infrastructure portfolio, including a highly-dense fiber network in some of the world’s most important metro markets. We believe the company has a unique opportunity to meet the growing demand for data associated with the connectivity and backhaul requirements of a range of customers. We are excited to work alongside the management team and EQT to grow the business and expand its presence in the global market."

Dan Caruso, Zayo’s Chairman and CEO, said, “Digital Colony and EQT share our vision that Zayo’s Fiber Fuels Global Innovation. Both are experienced global investors in the communications infrastructure space, and they appreciate our extraordinary fiber infrastructure assets, our highly talented team and our strong customer base. I am confident this partnership with EQT and Digital Colony will empower Zayo to accelerate its growth and strengthen its industry leadership.”

Separately, Zayo reported consolidated revenue of $647.2 million for the three months ended March 31, 2019, including $555.2 million from the Communications Infrastructure segments and $92.0 million from the Allstream segment. Net income was $34.7 million, including $39.2 million from the Communications Infrastructure segments and a net loss of $4.5 million from the Allstream segment.

https://investors.zayo.com/home/default.aspx