Zayo Group buying AboveNet for $2.2B

Mar 19, 2012

(AP) -- Telecommunications company Zayo Group said Monday it will acquire AboveNet Inc. for $2.2 billion. Both companies offer Internet and phone services to companies over fiber-optic networks.

The news sent AboveNet's shares up nearly 14 percent in premarket trading on Monday.

AboveNet's CEO said the combination of the two companies' fiber optics networks will better provide bandwidth services for customers. AboveNet serves government customers and the data-hungry financial, media and health care and Internet industries.

"Over the last five years Zayo has acquired a very impressive set of fiber infrastructure assets," said AboveNet CEO Bill LaPerch. "The combination of AboveNet's and Zayo's assets creates a dense fiber footprint throughout North America and Europe for a bandwidth hungry world."

AboveNet shareholders will receive $84 per share in cash, a 13 percent premium to the stock's closing price on Friday.

AboveNet's shares gained $10.05, or 13.5 percent, to $84.30 in premarket trading Monday. Shares had ranged from $49.79 to $78.07 in the past 12 months.

As part of the deal, private equity firm GTCR will invest in privately-held Zayo Group, based in Louisville, Colo.

White Plains, N.Y.-based AboveNet will have 30 days to solicit other offers.

Explore further: Yik Yak's frat-bro founders shrug off growing pains

0 shares

Related Stories

Level 3 to acquire Global Crossing for $2 billion

Apr 11, 2011

(AP) -- Level 3 Communications Inc. said Monday it will acquire another top long-distance Internet carrier, Global Crossing Ltd., in an all-stock transaction valued at about $2 billion.

Liberty Global to sell stake to Japan's KDDI

Jan 25, 2010

(AP) -- Japan's second-largest telecommunications company, KDDI Corp., said Monday it is acquiring Liberty Global Inc.'s stake in Japan's largest cable TV operator for $4 billion in cash.

Blackboard to be taken private in $1.64B deal

Jul 01, 2011

(AP) -- Educational software maker Blackboard is being taken private for $1.64 billion in cash by an investor group led by affiliates of Providence Equity Partners.

Verizon to buy Terremark for $1.4 billion

Jan 28, 2011

(AP) -- Verizon Communications Inc. said Thursday it is buying Terremark Worldwide Inc., a provider of information technology services, for $1.4 billion in cash.

Emerson to buy Avocent for $1.2 billion

Oct 06, 2009

(AP) -- Emerson Electric Co. said Tuesday it has agreed to buy Avocent Corp. for about $1.2 billion in cash, a move the company says will offer customers better management of their data centers.

Frontier to buy rural Verizon lines for $5.3B

May 13, 2009

(AP) -- Verizon Communications Inc. said Wednesday it reached a deal to sell scattered phone service areas outside its main Northeastern and Californian territories for $5.3 billion in stock.

Recommended for you

Yik Yak's frat-bro founders shrug off growing pains

4 hours ago

The most popular post of all time on Yik Yak is a dirty joke. Less than 2 years old, the Atlanta-based social network is geared mostly toward college students who access and post unsigned announcements through an app on their ...

Uber drivers fined in Hungary

May 24, 2015

The Hungarian tax authority fined Uber drivers in its first probe against the ride-sharing service which the economy ministry said Saturday "ignores passenger safety" and must be made to follow regulations.

Domino's taking orders via tweet

May 22, 2015

Domino's on Wednesday launched perhaps the easiest way to satisfy a pizza craving this side of mind reading: order by tweet.

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.