Zayo Group to Acquire American Fiber Systems
Copyright 2010 PR Newswire. All Rights Reserved
2010-06-30
LOUISVILLE, Colo., June 30 /PRNewswire/ -- Zayo Group, a provider of bandwidth
infrastructure and network-neutral colocation services, announced today that it
has reached a definitive agreement to acquire Rochester, NY, based American
Fiber Systems Holding Corporation (AFS), a leading provider of metropolitan
fiber network and telecom services. The acquisition will both augment and expand
Zayo's fiber network presence in nine tier 1 and tier 2 metropolitan markets
across the U.S.
"The addition of AFS's markets significantly increases the geographic scope of
the bandwidth infrastructure services that Zayo offers to its customers," said
Dan Caruso, President and CEO of Zayo Group. AFS will be the 15th acquisition by
Zayo Group since its inception in 2007.
AFS adds over 800 route miles of unique, fiber-rich network in 6 new
metropolitan markets - Boise, Kansas City, Las Vegas, Nashville, Reno and Salt
Lake City. In addition, AFS enhances Zayo's fiber depth and footprint with
approximately 400 additional route miles in Atlanta (a Zayo market pending the
close of AGL Networks), Cleveland and Minneapolis. Atlanta, Boise and Las Vegas
are particularly strong markets for AFS, representing nearly 75% of its revenue
base.
AFS' unique and deep fiber network supports a predominantly "on-net" revenue
base that is highly durable in nature and provides significant operating
leverage on incremental growth. In addition, AFS' product set is concentrated in
fiber and transport services, which is consistent with the existing Zayo
bandwidth infrastructure product strategy. As a result, the AFS customer base is
weighted towards the carrier, wireless and other wholesale segments, similar to
the sales and marketing approach of the Zayo Bandwidth business unit.
"Sierra Ventures whom has been with us since the beginning some ten years ago,
through thick and thin, we very much appreciate their support in the making of
AFS a success story resulting in this strategic combination with the Zayo
Group," said David Rusin, Founder & CEO of AFS. "We enjoin our customers and
employees to benefit even further given the scale and reach of Zayo."
The transaction, which is subject to regulatory approvals and customary closing
conditions, is expected to close in 90-120 days. The financial terms of the
agreement were not disclosed.
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