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Digital Colony and EQT picking up Zayo
Posted on Thursday, 09 May 2019 06:33
Colorado-headquartered communications infrastructure services provider Zayo has reached an agreement to be acquired by private equity firms EQT and Digital Colony.
Under the terms of the transaction, the buyers will pay USD 35.00 per share in the New York-listed company, thereby valuing the deal at USD 14.30 billion, including the assumption of debts totalling USD 5.90 billion.
The offer represents a 14.3 per cent premium over Zayo’s close of USD 30.62 on 7th May, the last trading day prior to the announcement.
Completion of the deal, which is taking place following a strategic review, remains subject to the green light from regulators and the target’s shareholders, as well as customary closing conditions, and is slated to follow during the first half of 2020.
Zayo chief executive Dan Caruso said he expects the deal to enable the target to accelerate its growth while reinforcing its position as a leader in its field.
Marc Ganzi, managing partner at Digital Colony, added: “We believe the company has a unique opportunity to meet the growing demand for data associated with the connectivity and backhaul requirements of a range of customers. We are excited to work alongside the management team and EQT to grow the business and expand its presence in the global market.”
Zayo was established in 2007 and now operates a 130,000-mile network providing metro connectivity to buildings and data centres throughout North America and Europe.
The company posted revenue of USD 1.28 billion for the six months to 31st December 2018, down from USD 1.30 billion over the corresponding timeframe in the previous year.
Operating income for the period stood at USD 267.50 million, compared to the USD 198.70 million recorded for the second half of 2017.
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