Wednesday, July 8, 2009

RCN Drops Bid for FiberNet, Deal with Zayo Proceeds

RCN withdrew its proposal to acquire FiberNet for $12.50 per share.

Consequently, FiberNet is proceeding with a sale to Zayo Group for $11.45 per share in cash. The transaction is not subject to any financing condition. The transaction is expected to be completed during the third quarter of 2009.

FiberNet owns and operates integrated colocation facilities and diverse transport routes in the gateway markets of New York/New Jersey, Los Angeles, Chicago and Miami.

Zayo Group is a regional provider of telecom services -- including bandwidth, voice and managed services -- to carrier, enterprise, SME and government customers. Zayo Group currently provides its service over a fiber network that spans 129 markets in 23 states. Zayo Group consists of three complementary business units: Zayo Bandwidth, Zayo Managed Services and Onvoy Voice Services.

See also