Zayo Continues Buying Binge With First Telecom
LOUISVILLE, Colo. -- Zayo Group, LLC (“Zayo”) announces that it has executed a definitive agreement to purchase First Telecom Services, LLC (“First Telecom Services” or “FTS”), a provider of Bandwidth Infrastructure services throughout the northeastern and midwestern United States, for a price of $110 million.
First Telecom Services manages a network of over 8,000 route miles of fiber and approximately 500 on-net buildings. It is focused on providing dark fiber and wavelength services across its 11 state footprint, with the highest concentration of network and revenue in Pennsylvania and Ohio. FTS’ customers are primarily other telecommunications carriers who leverage this unique footprint.
While the acquisition will bring new fiber routes to the broader Zayo footprint, it will also provide Zayo with ownership of fiber routes on which it currently operates via long term indefeasible right of usage (IRU) agreements.
“This transaction strengthens Zayo’s business both from a revenue and asset perspective,” says Dan Caruso, President and CEO of Zayo Group. “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 Group Inc. (NYSE: ZAYO)