Zayo: Zayo Closes Acquisition of Electric Lightwave (PR)

Mar 01, 2017 | Posted by Eric Bell

BOULDER, Colo. – Zayo Group Holdings, Inc. (NYSE: ZAYO) today announced it has closed its $1.42 billion acquisition of Electric Lightwave (formerly known as Integra Telecom), an infrastructure and telecom services provider serving 35 markets in the western U.S.

The acquisition adds 8,100 route miles of long haul fiber and 4,000 miles of dense metro fiber across Denver, Minneapolis, Phoenix, Portland, Seattle, Sacramento, San Francisco, San Jose, Salt Lake City, Spokane and Boise, with on-net connectivity to more than 3,100 enterprise buildings and 100 data centers.

“The acquisition creates a synergistic network presence across the strategically important West Coast markets and strengthens our position as the only nationwide independent provider of communications infrastructure,” said Dan Caruso, Zayo chairman and CEO. “Because of the complementary nature of the acquisition, and our Tranzact platform, we can begin cross-selling our full suite of services immediately.”

The portion of Electric Lightwave’s revenue that aligns with Zayo’s infrastructure-focused business segments will be rapidly integrated into Zayo’s Dark Fiber and Network Connectivity business segments. The remaining cash-flow generating unified communications business will be integrated with Zayo’s Canadian SME and voice businesses.

The combined network and infrastructure solutions are available immediately to Zayo and Electric Lightwave customers through their account representatives or via Tranzact, Zayo’s platform for purchasing and managing infrastructure. The suite of services includes dark fiber, wavelengths, Ethernet, IP, data center and cloud infrastructure across the combined network.

The acquisition was funded through debt and cash on hand, utilizing the net proceeds of Zayo’s January 2017 $650 million incremental term loan and $800 million offering of 5.750 percent Senior Notes.