US-based Zayo Group Holdings – which operates a 130,000-mile fibre network covering North America and Europe – has signed a definitive agreement to be acquired by affiliates of Digital Colony Partners and the EQT Infrastructure IV fund (EQT). Under the terms of the agreement, which was unanimously approved by Zayo’s Board of Directors, shareholders will receive USD35.00 in cash per share of Zayo’s common stock. In total, the transaction is valued at USD14.3 billion, including the assumption of USD5.9 billion of Zayo’s net debt obligations. The offer price represents a 32% premium to the volume-weighted price average of the last six months (i.e. USD26.44).
The closing of the deal is subject to customary conditions, including regulatory clearance and Zayo shareholder approvals. The transaction is expected to close in the first half of calendar year 2020. The transaction will result in Zayo transitioning from a public company to a private company. Under the new ownership, the Zayo team will remain headquartered in Boulder, Colorado.
Digital Colony recently (1 May 2019) completed the acquisition of another North American operator, Toronto-based Cogeco Peer 1, a provider of colocation, network connectivity and managed services with 16 data centres, over 50 PoPs in North America and Europe plus 3,300 route kilometres of metro fibre in Canada.