(WEB HOST INDUSTRY REVIEW) — Telecommunications provider FiberNet Telecom Group (www.ftgx.com) announced on Thursday that it has entered into an agreement to be acquired by bandwidth and telecom services provider Zayo Group (www.zayo.com) for $87.8 million in cash.
The transaction will still have to be approved by FiberNet’s stockholders at a special meeting, as well as by the FCC and state regulations.
FiberNet said it will consider any superior proposals from third parties until June 17.
Based in Louisville, Colorado, Zayo Group provides telecom services, including bandwidth, voice and managed services to carrier, enterprise, SME and government customers.
The company has three business units, comprised of Zayo Bandwidth, Zayo Managed Services and Onvoy Voice Services, while its fiber network spans 129 markets in 23 states.
FiberNet, which recently celebrated its 10th anniversary, owns and operates integrated colocation facilities and diverse transport routes in New York/New Jersey, Los Angeles, Chicago and Miami.
The telecom’s customized connectivity infrastructure provides a high bandwidth, fiber-optic solution to support the demand for network capacity and to connect multiple carriers’ and customers’ networks.
FiberNet recently reported the results of its fourth quarter earnings, which showed a 13.6 percent increase in revenues of $15.4 million, up from $13.6 million from the same period last year.
The company’s stock closed at $9.91 per share on Thursday.
The transaction is expected to be completed in the third quarter of 2009.
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