LOUISVILLE, Colo., June 30 /PRNewswire/ -- Zayo Group, a provider of bandwidth infrastructure and network-neutral colocation services, announced today that it has reached a definitive agreement to acquire Rochester, NY, based American Fiber Systems Holding Corporation (AFS), a leading provider of metropolitan fiber network and telecom services. The acquisition will both augment and expand Zayo's fiber network presence in nine tier 1 and tier 2 metropolitan markets across the U.S.
"The addition of AFS's markets significantly increases the geographic scope of the bandwidth infrastructure services that Zayo offers to its customers," said Dan Caruso, President and CEO of Zayo Group. AFS will be the 15th acquisition by Zayo Group since its inception in 2007.
AFS adds over 800 route miles of unique, fiber-rich network in 6 new metropolitan markets – Boise, Kansas City, Las Vegas, Nashville, Reno and Salt Lake City. In addition, AFS enhances Zayo's fiber depth and footprint with approximately 400 additional route miles in Atlanta (a Zayo market pending the close of AGL Networks), Cleveland and Minneapolis. Atlanta, Boise and Las Vegas are particularly strong markets for AFS, representing nearly 75% of its revenue base.
AFS' unique and deep fiber network supports a predominantly "on-net" revenue base that is highly durable in nature and provides significant operating leverage on incremental growth. In addition, AFS' product set is concentrated in fiber and transport services, which is consistent with the existing Zayo bandwidth infrastructure product strategy. As a result, the AFS customer base is weighted towards the carrier, wireless and other wholesale segments, similar to the sales and marketing approach of the Zayo Bandwidth business unit.
"Sierra Ventures whom has been with us since the beginning some ten years ago, through thick and thin, we very much appreciate their support in the making of AFS a success story resulting in this strategic combination with the Zayo Group," said David Rusin, Founder & CEO of AFS. "We enjoin our customers and employees to benefit even further given the scale and reach of Zayo."
The transaction, which is subject to regulatory approvals and customary closing conditions, is expected to close in 90-120 days. The financial terms of the agreement were not disclosed.
About Zayo Group
Based in Louisville, Colorado, privately owned Zayo Group (www.zayo.com) is a provider of bandwidth infrastructure and network neutral colocation services. Zayo provides its services over 20,000 route miles of regional fiber, metro fiber and fiber to the tower networks that span 141 markets and 23 states. Zayo Group is organized into three distinct business units: Zayo Bandwidth, which focuses on the carrier and wholesale segment, Zayo Enterprise Networks and zColo.
About American Fiber Systems
Based in Rochester, New York, privately-held American Fiber Systems (www.afsnetworks.com) provides dark fiber and lit bandwidth services to carrier and large enterprise customers. Since its founding in 1999 by former Frontier Communications President, David Rusin, AFS has expanded to include 1,200+ route miles of metropolitan fiber networks across nine markets and regionally throughout the State of Georgia .
SOURCE Zayo Group