Zayo acquires N.Y. telecom company

LOUISVILLE – Zayo Group has completed its acquisition of New York-based FiberNet Telecom Group Inc., an interconnection service provider, for $90.7 million.

In March, the Louisville-based telecommunications company announced it was the sole company pursuing the acquisition after RCN Corp. withdrew its higher bid – $12.50 per share compared to Zayo’s acquisition price of $11.45 per share.

“FiberNet has a deep presence in the most important telecommunications buildings in the U.S., particularly the greater New York/New Jersey metro region,” John Scarano, president of Zayo Bandwidth, a Zayo business unit, said in a statement. “Zayo extends the on-net reach to hundreds of other important telecom buildings across the Northeast and Midwest regions of the United States.”

As part of the acquisition, Zayo’s headquarters will remain in Louisville, but the company will retain FiberNet’s New York office. The company will also create a fourth business unit: zColo, Matt Erickson, Zayo’s head of corporate strategy and development, said in an e-mail.

As a result of the acquisition, FiberNet, a previously public company (formerly Nasdaq: FTGX), will become private.

Zayo Group is a regional provider of telecom services — including bandwidth, voice and managed services. It currently provides its services over a fiber network that spans 129 markets in 23 states.

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