Zayo Group's completion of its acquisition of American Fiber Systems (AFS) is all about expanding its network footprint and service reach to serve both carrier and enterprise carrier customers.
Now that the purchase is complete, Zayo Group instantly gains about 1,000 route miles of metro fiber and over 600 incremental buildings. Previously, AFS operated in nine markets, six of which are new markets to Zayo and three of which Zayo says will "bolster its network in existing markets."
Supporting a mainly "on-net" revenue base, 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.
Ken desGarennes, CFO of Zayo Group said in a release announcing the closing of the deal that "American Fiber Systems was focused on serving a customer base similar to that of Zayo and is expected to quickly add $15 million of post-synergized annual EBITDA to Zayo Group."
Taking into account its acquisitions of AFS and earlier AGL Networks, Zayo will now have over 22,000 fiber route miles and operate in 150 networks.
M&A activity in the competitive fiber market has been active lately, and Zayo isn't the only provider making deals. Following a spate of rumors, Kentucky Data Link (KDL), Fibertech and Fibernet were acquired by Windstream (Nasdaq: WIN), Court Square and nTelos (NASDAQ: NTLS), respectively. However, no deal has been struck to acquire Alpheus, which like KDL and Fibertech was rumored to be shopping themselves off to potential buyers.
For more:
- see the release here
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