(WEB HOST INDUSTRY REVIEW) — Bandwidth and telecom services provider Zayo Group (www.zayo.com) announced on Thursday it has successfully completed its acquisition of telecommunications provider FiberNet Telecom Group (www.fibernet.com).
The companies first announced it had entered the deal in May, revealing that Zayo would purchase the teleco provider for $87.8 million in cash. At the time, the deal was pending approval by FiberNet’s stockholders, as well as by the FCC and state regulations.
With the completion of the acquisition, Zayo is now the exclusive manager and operator of interconnect exchange 60 Hudson St. Meet-Me-Room in New York City, adding to its other colocation and interconnection facilities at 165 Halsey in New Jersey, 111 8 Ave. in New York City, and in key locations in Chicago, Miami and Los Angeles.
Zayo also receives FiberNet’s revenue resulting from US connectivity services it provided to and from carriers from Europe, Asia and South America.
“The strategic foundation of Zayo Group is to provide bandwidth infrastructure services to carriers, Internet companies, and other large consumers of bandwidth,” says Dan Caruso, CEO of Zayo Group. “FiberNet’s important role in providing connectivity in and between the major carrier hotels is a natural extension of Zayo’s bandwidth services.”
Currently, Zayo Group consists of three business units, including Zayo Bandwidth, Zayo Enterprise Networks, and Onvoy Voice Services.
The company will also launch a fourth business unit in the near future as part of the integration of FiberNet.
Zayo Bandwidth’s existing network connects to several of the same buildings where FiberNet provides services.
he interconnection of both networks will occur almost immediately,at which time, Zayo Bandwidth will absorb FiberNet’s transport network and business.
