Thursday, September 30, 2010

Zayo Completes Acquisition of American Fiber Systems

Zayo Group completed its previously announced acquisition of American Fiber Systems, adding approximately 1,000 route miles of metropolitan fiber footprint and over 600 incremental buildings. AFS operated in nine markets, six of which are new markets for Zayo Group and three of which bolster Zayo's network in existing markets. Financial terms were not disclosed.

AFS, which is based in Rochester, NY, operates in 6 new metropolitan markets for Zayo -- Boise, Kansas City, Las Vegas, Nashville, Reno and Salt Lake City. 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. Over 80% of monthly recurring revenue is "on-net" via AFS fiber.

With the addition of AFS and the recent acquisition of AGL Networks, Zayo now has over 22,000 fiber route miles and operates in 150 markets including dedicated fiber solutions in 60 metro markets.

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