TMCnet News
Zayo Group to acquire First Telecom ServicesOct 18, 2012 (Datamonitor Financial Deals Tracker via COMTEX) -- Zayo Group, LLC (Zayo Group, Inc.) has entered into a definitive agreement to acquire First Telecom Services, LLC, a provider of bandwidth infrastructure services, for $110 million. Both the companies are based in the US. Zayo is a provider of fiber-based bandwidth infrastructure and network-neutral colocation and interconnection services. Zayo Group will fund the transition from available cash. The Bank Street Group LLC is acting as a financial advisor to First Telecom Services. The transaction is expected to close by the end of 2012. Deal Value (US$ Million) 110 Deal Type Acquisition Sub-Category Majority Acquisition Deal Status Announced: 2012-10-17 Deal Participants Target (Company) First Telecom Services, LLC Acquirer (Company) Zayo Group, Inc. Deal Rationale The acquisition will bring new fiber routes to the broader Zayo footprint and it will also provide Zayo with ownership of fiber routes on which it currently operates via long term indefeasible right of usage (IRU) agreements. This transaction strengthens Zayo's business both from a revenue and asset perspective. |