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Dealipedia - Zayo Group acquires Citynet Fiber Network

Zayo Group acquires Citynet Fiber Network

Deal Participants:
Acquiring Company: Zayo Group View Profile Charts Homepage
Target Company: Citynet Fiber Network View Profile Add Homepage Google Search
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Date:
Announced: Feb 18, 2008

PRESS RELEASE

Zayo Completes Acquisition of Citynet
Acquisition Doubles Zayo's Network

(Louisville, Colo.) February 18, 2008 - Zayo Group - a regional provider of bandwidth and telecom services - announced it has closed its acquisition of Citynet Fiber Network (CFN), the wholesale division of integrated communications provider Citynet. The deal doubles Zayo's metro and regional fiber route miles to 17,000, serving more than 1,400 on-net building locations in 12 states.

Tulsa, Okla.-based CFN now becomes part of Zayo Bandwidth, Zayo Group's fiber-based bandwidth business unit that provides solutions to carriers, web-centric companies, public institutions and enterprises. Zayo Bandwidth services include private line, wavelength, Ethernet, Internet and colocation.

"This event enables the combination of two great networks and two strong teams to better serve our customers," said John Scarano, COO of Zayo Group and President of Zayo Bandwidth. "Zayo's network now extends fully across the central and eastern regions of the US and throughout nearly one hundred metropolitan areas, thereby facilitating deep access reach and associated long-term benefits for our customers."

The CFN network has 8,500 route miles of fiber covering 57 Tier I, II and III markets in 10 states. With the acquisition, Zayo Bandwidth's network now connects to more local exchange carrier central offices and carrier hotels as well as wireless mobile switching centers. The new network footprint unites Zayo's strength in various metro markets with CFN's regional long-haul routes.

The sale affects only the wholesale operations of Citynet. Though terms of the agreement are not being released, Zayo and Citynet both report that the transaction will enable them to focus on their respective strengths - Zayo Bandwidth on providing reliable bandwidth solutions and Citynet Retail on their retail suite of services, including voice, data, internet, network managed services and voice over IP (VoIP).

"The sale of CFN to Zayo marks an important opportunity for Citynet. We can now move forward as a leading regional telecommunications provider in the 12 states that we provide service. Our company will be virtually debt free which will allow Citynet to concentrate on our core retail business activities and future acquisitions," said Jim Martin, President and CEO of Citynet.

CFN is Zayo's sixth acquisition since spring of 2007. Throughout the integration process, customers of both companies will continue to experience reliable bandwidth and responsive service as Zayo openly provides network information, technical resources and access to the executive team.

"I've found Zayo to be responsive to our feedback, flexible with their programs and fast with their pricing quotes," said Zayo customer Kent Waletski, Transport Engineer for Alltel Communications, Inc. "They cut through the red tape."

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Warning: date(): It is not safe to rely on the system's timezone settings. You are *required* to use the date.timezone setting or the date_default_timezone_set() function. In case you used any of those methods and you are still getting this warning, you most likely misspelled the timezone identifier. We selected the timezone 'UTC' for now, but please set date.timezone to select your timezone. in /home/dealiped/public_html/deal_view_acquisition.php on line 746

Warning: date(): It is not safe to rely on the system's timezone settings. You are *required* to use the date.timezone setting or the date_default_timezone_set() function. In case you used any of those methods and you are still getting this warning, you most likely misspelled the timezone identifier. We selected the timezone 'UTC' for now, but please set date.timezone to select your timezone. in /home/dealiped/public_html/deal_view_acquisition.php on line 746

Warning: date(): It is not safe to rely on the system's timezone settings. You are *required* to use the date.timezone setting or the date_default_timezone_set() function. In case you used any of those methods and you are still getting this warning, you most likely misspelled the timezone identifier. We selected the timezone 'UTC' for now, but please set date.timezone to select your timezone. in /home/dealiped/public_html/deal_view_acquisition.php on line 746

Warning: date(): It is not safe to rely on the system's timezone settings. You are *required* to use the date.timezone setting or the date_default_timezone_set() function. In case you used any of those methods and you are still getting this warning, you most likely misspelled the timezone identifier. We selected the timezone 'UTC' for now, but please set date.timezone to select your timezone. in /home/dealiped/public_html/deal_view_acquisition.php on line 746
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This version submitted by azstrik

 

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