Friday October 19, 2012 0 comments
LOUISVILLE - Zayo Group LLC has executed a definitive agreement to purchase First Telecom Services LLC, a provider of bandwidth infrastructure services throughout the Northwest and Midwest United States, for $110 million, Zayo announced.
First Telecom, based in Pennsylvania, manages a network of more than 8,000 route miles of fiber and about 500 on-net buildings. The company focuses on providing dark fiber and wavelength services across 11 states, with the highest concentration of network and revenue in Pennsylvania and Ohio.
While the acquisition will bring new fiber routes to Zayo's footprint, it will also provide Zayo with ownership of fiber routes on which it currently operates via long-term, indefeasible right-of-usage agreements.
"This transaction strengthens Zayo's business both from a revenue and asset perspective," said Dan Caruso, Zayo Group president and CEO.
"First and foremost, FTS brings a strong and durable base of largely dark fiber revenue from a select group of strategic customers. Second, it secures Zayo's control over some critical and unique regional fiber routes."
Zayo said it currently operates in the FTS region with similar products and customers, which will enable a straightforward integration.
The transaction, subject to customary approvals, is expected to close by the end of the year and will be funded with cash on hand. Bank Street Group LLC served as exclusive financial advisor to FTS on the transaction.
For more information, visit www.zayo.com.