Zayo Group to acquire American Fiber Systems

JUNE 30, 2010 -- Zayo Group, a provider of bandwidth infrastructure and network-neutral colocation services, has reached a definitive agreement to acquire Rochester, N.Y.-based American Fiber Systems Holding Corp. (AFS), a provider of metropolitan fiber network and telecom services. The acquisition is expected to augment and expand Zayo's fiber network presence in nine tier 1 and tier 2 metropolitan markets across the U.S.

JUNE 30, 2010 -- Zayo Group, a provider of bandwidth infrastructure and network-neutral colocation services, has reached a definitive agreement to acquire Rochester, N.Y.-based American Fiber Systems Holding Corp. (AFS), a provider of metropolitan fiber network and telecom services. The acquisition is expected to augment and expand Zayo's fiber network presence in nine tier 1 and tier 2 metropolitan markets across the U.S.

"The addition of AFS's markets significantly increases the geographic scope of the bandwidth infrastructure services that Zayo offers to its customers," says Dan Caruso, president and CEO of Zayo Group. AFS will be the 15th acquisition by Zayo Group since its inception in 2007.

AFS adds more than 800 route miles of fiber-rich network in six 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.

AFS's product set is concentrated in fiber and transport services, which is consistent with the existing Zayo bandwidth infrastructure product strategy. The AFS customer base is weighted toward the carrier, wireless, and other wholesale segments, similar to the sales and marketing approach of the Zayo Bandwidth business unit.

The transaction, which is subject to regulatory approvals and customary closing conditions, is expected to close in 90 to 120 days. The financial terms of the agreement were not disclosed.

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