August 20, 2013
Zayo Group Completes Acquisition of Access Communications for $40 Million
By Deepika Mala
Zayo Group (News - Alert), an international provider of fiber-based Bandwidth Infrastructure services and carrier-neutral colocation and interconnection services, recently signed a $40 million agreement to purchase Access Communications (News - Alert), Inc., a major player in metro bandwidth infrastructure services in Minneapolis-St. Paul, Minnesota.
Access Communications owns and operates a 1,200 mile metropolitan fiber network that covers the greater Minneapolis-St. Paul metropolitan area and connects more than 500 on-Net buildings.
With the help of this acquisition, Zayo Group will be able to enhance its fiber network in the greater Minneapolis-St. Paul metro area. It will also be able to successfully offer customers of Access Communications a broader set of bandwidth infrastructure products across an expanded fiber network, as well as offer greater network reach for Zayo’s current and prospective customers.
The firm specializes in providing dark fiber services to customers within the Minneapolis area carrier, enterprise, government and education sectors. Its concentrated network geography and focused product set will help Zayo to attain a quick network and operations-integration process.
Officials said that the transaction, subject to customary approvals, will be funded with cash on hand and is expected to close quickly.
“Given the complementary breadth and depth of its fiber network, the Access transaction is a natural step for Zayo,” said Dan Caruso (News - Alert), president and CEO of Zayo Group, in a statement. “The acquisition is the latest in a series of major investments supporting the growth of our bandwidth infrastructure business in Minnesota.”
Zayo’s extensive network has been the result of its prior acquisitions. By purchasing USCarrier, FiberGate and AboveNet, the company’s network now includes 74,300 route miles, serving 45 states and Washington, D.C.
Earlier in April, TMC (News - Alert) reported that Zayo has expanded its internet protocol service offering in the Las Vegas area, consisting of an upgraded core IP node, metro transport rings and increased connectivity to the remainder of the Zayo IP backbone.
Edited by Rory J. Thompson
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