Introduction
In a significant move, Zayo Group, a leading provider of fiber-based bandwidth infrastructure and services, has acquired fellow bandwidth connectivity company AboveNet for approximately $2.2 billion. This acquisition marks a major milestone for Zayo Group, further expanding its reach and capabilities in the market.
Background on Zayo Group
Zayo Group is a global provider of mission-critical bandwidth infrastructure, offering fiber-based bandwidth, voice, and managed services to carrier, enterprise, SME, and government customers. With a strong presence in North America and Europe, Zayo Group has been actively expanding its network and capabilities through strategic acquisitions.
Acquisition Details
The acquisition of AboveNet by Zayo Group was announced on March 16, with the transaction valued at $2.2 billion or $84.00 per share in cash. This represents a 13% premium over AboveNet’s closing price on the day of the announcement. As part of the deal, GTCR, a leading Chicago-based private equity firm, will make an equity investment in Zayo Group.
About AboveNet
AboveNet is a leading provider of high-bandwidth connectivity solutions for large corporate enterprises and communications carriers. Its private optical network delivers network and IP services across the US and internationally, serving demanding markets such as financial services, media, healthcare, 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."
Impact on the Market
The acquisition is expected to have significant implications for the market, as it combines two leading providers of fiber-based infrastructure and services. The combined entity will possess an extensive network footprint, enabling it to better serve the growing demand for bandwidth and connectivity solutions.
Zayo Group’s recent acquisition of 360 Networks for $345 million demonstrates its commitment to expanding its presence in the market. With AboveNet on board, Zayo Group will be well-positioned to address the increasing needs of enterprise and carrier customers.
Conclusion
The acquisition of AboveNet by Zayo Group marks a significant milestone in the evolution of the bandwidth infrastructure market. The combined entity will possess an extensive network footprint, enabling it to better serve the growing demand for bandwidth and connectivity solutions.
This deal is expected to have far-reaching implications for the market, as it combines two leading providers of fiber-based infrastructure and services. With AboveNet on board, Zayo Group will be uniquely qualified to meet the expanding needs of enterprise and carrier customers.
About the Companies Involved
- Zayo Group: A global provider of mission-critical bandwidth infrastructure, offering fiber-based bandwidth, voice, and managed services to carrier, enterprise, SME, and government customers.
- AboveNet: A leading provider of high-bandwidth connectivity solutions for large corporate enterprises and communications carriers. Its private optical network delivers network and IP services across the US and internationally.
- GTCR: A leading Chicago-based private equity firm that will make an equity investment in Zayo Group as part of the acquisition.
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About the Author
Leena Rao is a Senior Writer at Fortune Magazine, with a background in journalism and technology. She has previously worked as an Operating Partner at Google Ventures and Managing Editor at TechCrunch. Leena holds a graduate degree from the Medill School of Journalism at Northwestern University and is a Columbia University alumna.
Topics Covered
- Enterprise
- Venture Capital
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This article provides an in-depth look at the acquisition of AboveNet by Zayo Group, exploring the implications for the market and the companies involved. With a strong focus on enterprise and venture capital, this piece is a must-read for anyone interested in the latest developments in the technology industry.
