Zayo Group has entered into an agreement to acquire Electric Lightwave, formerly known as Integra Telecom, for USD1.42 billion in cash and debt. Electric Lightwave, which provides infrastructure and telecom services primarily in the Western United States, has 8,100 route miles of long haul fibre and 4,000 miles of dense metro fibre in 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 centres. Zayo anticipates more than USD40 million in annual cost synergies to be realised throughout the integration process and will benefit from more than USD400 million in net operating loss carry-forwards acquired in the transaction. Zayo expects to close the transaction in Q1 2017, subject to customary regulatory approvals and closing conditions. The deal will be funded with a combination of cash on hand and debt.
Dan Caruso, chairman and CEO of Zayo Group, commented: ‘Electric Lightwave provides us another unique and dense regional fibre network that advances our position as the only national independent infrastructure provider remaining in the US. Electric Lightwave has both strong metro fibre assets in key West Coast markets and capacity and routes that will augment Zayo’s intercity footprint.’