(Adds details, background)
Nov 30 Telecom infrastructure provider Zayo
Group Holdings Inc said on Wednesday it would buy
smaller rival Electric Lightwave for $1.42 billion in cash to
expand its fiber network on the U.S. West Coast.
Colorado-based Zayo, which provides fiber, bandwidth and
telecom infrastructure to enterprises, said it expects to save
over $40 million annually from the acquisition.
The deal is the latest in a series of mergers in the
enterprise communications space as U.S. businesses' burgeoning
demand for data and video fuels a revival in fiber optic
Last month, CenturyLink Inc agreed to buy Level 3
Communications Inc in a $24 billion deal to expand its
Windstream Holdings Inc said earlier this month it
would buy fellow U.S. telecom company EarthLink Holdings Corp
in a deal valued at $1.1 billion to cut costs and
better compete with rivals.
Electric Lightwave, formerly known as Integra Telecom,
provides telecom infrastructure in the western United States,
while Zayo owns fiber networks in cities including New York,
Chicago, Paris and London.
Zayo said it would fund the purchase with cash and debt.
Gibson Dunn & Crutcher LLP was Zayo's legal adviser, while
Latham & Watkins and Gray Plant Mooty provided legal counsel to
(Reporting by Aishwarya Venugopal and Laharee Chatterjee in
Bengaluru; Editing by Sai Sachin Ravikumar)