Bandwidth behemoth Zayo has entered into an agreement to acquire AboveNet, another fiber infrastructure company, for a massive $2.2 billion. Zayo is a publicly traded company but its latest investment is not; investors were ecstatic after the news hit and ABVT skyrocketed 13 percent to $83.93.
The Wall Street Journal picked up some of the extra details involving the deal:
“Zayo has been acquisitive in recent years and the latest proposed deal would be the largest for the company. The deal also includes an equity investment by private-equity firm GTCR and an additional investment by Charlesbank Capital Partners. Further details weren’t disclosed.
“The acquisition, expected to close midyear, allows AboveNet 30 days to seek alternative acquisition proposals, and Zayo receives rights to match any such offers.”
Zayo is used to dealing with big numbers, associated with both the company’s massive nation-wide infrastructure and its acquisition portfolio. Their previous M&A development was back in December last year, when it purchased 360networks and took a $315 million loan from bankers to facilitate the deal. This expansion stretched Zayo’s domain even further, making its technology available in over 150 markets at the time.
Also in December the networking solutions provider released a case study from Green House Data, an environmentally friendly facility that offers hosted services out of Wyoming.
One of the newer developments from Zayo hit the web just a couple of months ago. zColo, a subsidiary of the group bought out MarquisNet’s data center unit for an undisclosed sum.
“zColo is a carrier-neutral colocation provider focused on providing space, power, and interconnection services,” states Chris Morley, President of zColo. “Though we operate separately and autonomously from Zayo Bandwidth and Zayo Fiber Solutions, zColo’s focus is consistent with Zayo Group’s infrastructure strategy.”