US internet services firm Zayo Group to acquire rival AboveNet for $2.2 bn
19 Mar 2012
US-based telecommunications company Zayo Group today agreed to acquire its rival AboveNet Inc, a provider of internet and phone services to companies over fibre-optic networks, for $2.2 billion.
Privately-held, Louisville, Colorado-based Zayo will pay $84.00 per share in cash, a 13 per cent premium over AboveNet's closing price on 16 March and a 21 per cent premium over the average closing stock price for the past 60 days.
As part of the transaction, GTCR, a Chicago-based private equity firm, will invest in Zayo and Charlesbank Capital Partners, a current Zayo investor, will make an additional investment in the company.
AboveNet, which competes with big telecom companies like Verizon Communications and AT&T and smaller rivals, has until 17 April to solicit better offers.
The 'go-shop' period can be extended to 2 May under certain circumstances, and Zayo has certain rights to match any superior proposal.
White Plains, New York-based AboveNet provides high bandwidth connectivity solutions for businesses and carriers. Its private optical network delivers key network and IP services in and among top US and European markets.
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