\tZayo Group, a supplier of fibre infrastructure for mobile operators, inked a $14.3 billion deal to become a private company after facing criticism from investors about its performance.<\/p>\n
Investment groups Digital Colony Partners and EQT Partners will acquire the company,\u00a0paying $35 in cash for each share of Zayo common stock and taking on $5.9 billion of its debt. The deal is expected to close in the first half of 2020.<\/p>\n
Zayo owns\u00a012.2 million miles of dark (or unused) fibre which can be\u00a0leased by operators [1]\u00a0for backhaul and other network needs. Its assets also include 51 operator-neutral data centres and a 130,000-mile active fibre network covering key cities in North America and Europe.<\/p>\n
The move comes around two months after Starboard Value, one of Zayo’s major shareholders with a 4 per cent stake, publicly criticised the fibre operator’s lack of performance despite being in an \u201cenviable position to capitalise on the ever-growing demand for bandwidth\u201d.<\/p>\n
Yancey Spruill, Zayo\u2019s lead independent director, said in a statement a review of strategic options for the company determined the sale will strengthen its “financial flexibility, enabling the company to increase investments and better position itself for long-term growth and profitability\u201d.<\/p>\n[1] https:\/\/www.mobileworldlive.com\/featured-content\/top-three\/mystery-us-operator-taps-zayo-for-macro-expansion\/<\/p>\n","protected":false},"excerpt":{"rendered":"
Zayo Group, a supplier of fibre infrastructure for mobile operators, inked a $14.3 billion deal …<\/p>\n
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