Zayo continues its acquisition spree, this time picking up AllStream to build its Canadian presence.

Dan Jones, Mobile Editor

November 23, 2015

1 Min Read
Zayo to Buy AllStream for $348M

Zayo plans to expand its fiber presence in Canada by buying AllStream from MTS for $348 million in cash.

The company revealed the deal on Monday morning. Zayo Group Inc. (NYSE: ZAYO) will pay 465 million Canadian dollars ($348 million) for Allstream Corp. , which is a subsidiary of MTS.

The point of the buyout is to give Zayo a presence in the major cities in Canada and links into the US market. Allstream has over 5,992 route miles of metro fiber network concentrated in Toronto, Montreal, Vancouver, Ottawa and Calgary that connect to around 3,300 buildings. The unit has a long-haul fiber network connecting all major Canadian markets and ten US network access points. In addition, Allstream operates co-location space in Toronto, Montreal and Vancouver.

The deal is expected to close in the first quarter of 2016. AllStream will become Zayo Canada.

The buyout continues Zayo Group Inc. (NYSE: ZAYO)'s acquisition spree in 2015. The Boulder, Colorado-based group has this year closed a $675 million takeover of Latisys Holdings and a $52 million acquisition of IdeaTek and recently agreed to pay €95 million ($101 million) for Ireland-based Viatel.

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— Dan Jones, Mobile Editor, Light Reading

About the Author(s)

Dan Jones

Mobile Editor

Dan is to hats what Will.I.Am is to ridiculous eyewear. Fedora, trilby, tam-o-shanter -- all have graced the Jones pate during his career as the go-to purveyor of mobile essentials.

But hey, Dan is so much more than 4G maps and state-of-the-art headgear. Before joining the Light Reading team in 2002 he was an award-winning cult hit on Broadway (with four 'Toni' awards, two 'Emma' gongs and a 'Brian' to his name) with his one-man show, "Dan Sings the Show Tunes."

His perfectly crafted blogs, falling under the "Jonestown" banner, have been compared to the works of Chekhov. But only by Dan.

He lives in Brooklyn with cats.

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