Tuesday, June 29, 2010

Zayo to Acquire American Fiber Systems

Zayo Group agreed to acquire American Fiber Systems Holding Corporation (AFS), a leading provider of metropolitan fiber network and telecom services. Financial terms were not disclosed.

AFS, which is based in Rochester, NY, operates 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.

Zayo noted that 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.

"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.