Zayo Group, a provider of telecom and internet infrastructure services, announced today that it has closed its previously announced transaction to purchase American Fiber Systems (AFS), a leading provider of metropolitan fiber network and telecom services. The acquisition adds approximately 1,000 route miles of metropolitan fiber footprint and over 600 incremental buildings. AFS operated in nine markets, six of which are new markets for Zayo Group and three of which bolster Zayo’s network in existing markets.
“Zayo Group’s acquisition strategy remains targeted on entities that provide high-margin bandwidth infrastructure services,” said Ken desGarennes, CFO of Zayo Group. “American Fiber Systems was focused on serving a customer base similar to that of Zayo and is expected to quickly add $15M of post-synergized annual EBITDA to Zayo Group.”
AFS provided both lit and dark fiber bandwidth infrastructure services in Atlanta, Boise, Cleveland, Kansas City, Las Vegas, Minneapolis, Nashville, Reno and Salt Lake City. AFS’ unique and deep fiber networks support a predominantly “on-net” revenue base that is highly durable in nature and provides significant operating leverage on incremental growth. AFS’ product set is concentrated in fiber and transport services, which is consistent with the existing Zayo bandwidth infrastructure product strategy.
Other key financial and operational highlights with respect to AFS:
“The acquisition of AFS provides Zayo with an ideal combination of network assets and revenue base,” said Dan Caruso, CEO of Zayo Group. “AFS brings unique fiber assets to both new and existing markets, and its product set and customer base fit very cleanly into Zayo’s focus on infrastructure services.”
With the addition of AFS and the recent acquisition of AGL Networks, Zayo now has over 22,000 fiber route miles and operates in 150 markets including dedicated fiber solutions in 60 metro markets.
ABOUT ZAYO GROUP
Based in Louisville, Colo., privately owned Zayo Group (www.zayo.com) is a provider of telecom and Internet infrastructure services. Zayo provides its infrastructure services over its regional, metro fiber and fiber to the tower networks that span 150 markets and 30 states plus the District of Columbia. Zayo Group is organized into four distinct business units: Zayo Bandwidth, Zayo Fiber Solutions, Zayo Enterprise Networks and zColo.