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Zayo Group to Acquire Master Agent Provider AboveNet
March 26, 2012
Zayo Group, a provider of fiber-based bandwidth infrastructure and network-neutral colocation and interconnection services, is acquiring AboveNet, a provider of master agent Telecom Brokerage (News - Alert) Inc., for approximately $2.2 billion.
According to officials at AboveNet, the combination of the assets of both companies will create a dense fiber footprint throughout North America and Europe for a bandwidth hungry world. The new company will cater to enterprise and carrier customers who are in need of these solutions.
“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 (News - Alert), president and CEO of Zayo Group, in a statement. “We have admired AboveNet’s business model and results and believe the combination will create value for customers, employees and investors.”
Zayo’s boards of directors have approved a definitive agreement to acquire the master agent provider. Under the terms of this agreement, each share of AboveNet common stock issued and outstanding immediately prior to the transaction will be entitled to receive $84.00 per share in cash.
The definitive agreement also contains a 30-day “go-shop” provision, which entitles AboveNet to solicit and enter into discussions with respect to alternative acquisition proposals until April 17, 2012, subject to extension to May 2, 2012 under certain circumstances
Another important development in this transaction is that GTCR, a Chicago-based private equity firm, will make an equity investment in Zayo. In addition to GTCR’s new investment, Charlesbank Capital Partners, a current Zayo investor, will make an additional investment in the company.
Morgan Stanley Senior Funding and Barclays have agreed to support the Zayo Group (News - Alert) with sufficient committed debt financing, in addition to the equity commitments from GTCR and Charlesbank Capital Partners.
Last year, TMCnet has the news that AboveNet added MPG Management Associates as a master agent to its award-winning National Agent Program.
As an AboveNet master agent, MPG will have access to an extensive portfolio of core metro services, including fiber optic infrastructure and Ethernet and Wave connectivity.
Edited by Jamie Epstein
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