Zayo Group to sell carrier in Minnesota for $42 million

BOULDER — Zayo Group Holdings Inc. (NYSE: ZAYO) is selling Scott-Rice Telephone Co. to New Ulm Telecom Inc. for $42 million.

Scott-Rice is an incumbent local exchange carrier in Minnesota. Zayo acquired it through its March 2017 purchase of Electric Lightwave. It has been managed separately but within Zayo’s Allstream business segment.

Scott-Rice Telephone serves residential and business customers in Scott and Rice counties, southwest of Minneapolis.

“This transaction represents further progress toward the separation of our Allstream business,” Matt Steinfort, Zayo’s CFO, said in a prepared statement. “It is consistent with Zayo’s strategic focus on communications infrastructure and our goal of maximizing the value of our noncore assets.”

The deal is subject to regulatory approval but is expected to close in June.

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