The transaction includes $5.9 billion of Zayo`s net commitments, which will be supported by the two investment firms. The agreement grants Zayo shareholders $35.00 in cash per share of Zayo`s common stock and has been approved by Zayo`s Board of Directors. “[Digital Colony and EQT Partners] are experienced global communications infrastructure investors and value our exceptional fiber optic infrastructure resources, talented team and strong customer base. I am confident that this partnership with EQT and Digital Colony will enable Zayo to accelerate its growth and strengthen its leadership in the industry,” said Dan Caruso, Zayo`s President and CEO, in a statement. Under the terms of the agreement, Zayo will move from public to private and the Zayo team will continue to operate and implement the company`s strategy from its current headquarters in Colorado, the company said in a statement. In April 2017, Zayo launched industry veteran Andrew Crouch as president and chief operating officer, who left the company in May 2018. At the same time, Zayo appointed Scott Forbush head of the chain, who meanwhile succomed as vice president of sales at Agent Telarus. Fibre-optic infrastructure specialist and network service provider Zayo has been taken over by global investment firms Digital Colony Partners and EQT Partners and is becoming private. The 25 hottest IoT and 5G Edge Business Services: 2020 Edge Computing 100 The acquisition is coming, as the Boulder, Colo.-based company would have faced challenges in the overcrowded fiber sector. In March, Zayo said it was exploring strategic alternatives, leading to speculation about a possible takeover offer. The agreement is expected to be concluded in the first half of 2020, the company said. Frontier Communications Nabs Vodafone UK CEO To Steer Post-Bankruptcy Turnaround Palo Alto Networks Takes On 5G Security With New Offerings Zayo was expected to release its fiscal third-quarter earnings on Thursday, but the carrier instead reported its earnings on Wednesday as it revealed the acquisition deal.
Zayo reported revenue of $647.2 million during this period, exceeding Wall Street`s forecast of $640.2 million. The company stated that the offer price represents a 32 per cent increase over the volume-weighted average of $26.44 over the last six months. Zayo`s shares rose 7.84 percent Wednesday afternoon to 33.02 $US.