BOULDER — Broadband infrastructure provider Zayo Group Holdings Inc. (NYSE: ZAYO) announced Wednesday morning that it has reached a deal to acquire Vancouver, Wash.-based Electric Lightwave for $1.42 billion in cash.
Electric Lightwave, formerly known as Integra Telecom, operates mostly in the western United States.
The acquisition would give Boulder-based Zayo an additional 8,100 route miles of long-haul fiber optic cable and 4,000 miles of metro fiber in cities like Portland, Ore.; Seattle; Sacramento; San Francisco; San Jose; Salt Lake City; and Spokane.
Zayo officials also expect the merger to provide the two companies more than $40 million in annual cost savings.
The deal is slated to close in the first quarter of 2017.
“Electric Lightwave provides us another unique and dense regional fiber network that advances our position as the only national independent infrastructure provider remaining in the U.S.,” Zayo chairman and CEO Dan Caruso said in a news release. “Electric Lightwave has both strong metro fiber assets in key West Coast markets and capacity and routes that will augment Zayo’s intercity footprint.”
Zayo Group swung to profit during its fiscal first quarter ending Sept. 30, with net income of $15.7 million and revenue of $504.9 million.