Monday January 25, 2016 0 comments
BOULDER -- Zayo Group Holdings (NYSE: ZAYO), a global leader in communications infrastructure, announced it has closed on the acquisition of Allstream Inc., a wholly-owned subsidiary of Manitoba Telecom Services Inc. (TSX: MBT).
The purchase price was $465 million Canadian dollars and establishes Zayo as the only Pan-US/Canada fiber network, adding five dense metro networks to Zayo’s portfolio, the company said.
The acquisition adds more than 18,000 route-miles to Zayo’s fiber network, including 12,500 miles of long-haul fiber connecting all major Canadian markets and 5,500 route-miles of metro fiber network connecting approximately 3,300 on-net buildings in Canada’s top five metro markets.
Zayo said it will organize the Allstream business and assets into two business units. Michael Strople, Allstream president, will serve as managing director for both units.
“Our goal is to unlock the potential of Allstream’s assets to generate value for customers and shareholders,” said Dan Caruso, Zayo’s chairman and CEO. “The new structure will enable both business units to better focus on their customers in order to grow and innovate.”