Zayo Group buying AboveNet for $2.2B

March 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: Frontier to buy rural Verizon lines for $5.3B


Related Stories

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.

Emerson to buy Avocent for $1.2 billion

October 6, 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.

Liberty Global to sell stake to Japan's KDDI

January 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.

Verizon to buy Terremark for $1.4 billion

January 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.

Level 3 to acquire Global Crossing for $2 billion

April 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.

Blackboard to be taken private in $1.64B deal

July 1, 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.

Recommended for you

Nevada researchers trying to turn roadside weed into biofuel

November 26, 2015

Three decades ago, a University of Nevada researcher who obtained one of the first U.S. Energy Department grants to study the potential to turn plants into biofuels became convinced that a roadside weed—curly top gumweed—was ...

Glider pilots aim for the stratosphere

November 20, 2015

Talk about serendipity. Einar Enevoldson was strolling past a scientist's office in 1991 when he noticed a freshly printed image tacked to the wall. He was thunderstruck; it showed faint particles in the sky that proved something ...


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.