Zayo Group Holdings, Inc. (NYSE: ZAYO) has closed its acquisition of Allstream, Inc., a wholly owned subsidiary of Manitoba Telecom Services Inc. (TSX: MBT), for a purchase price of CDN465 million, the company said.
The acquisition establishes Zayo as the only Pan-US/Canada fiber network provider, and adds five dense metro networks to Zayo´s portfolio.
The acquisition adds more than 18,000 route miles to Zayo´s fiber network, including 12,500 miles of long-haul fiber connecting all major Canadian markets and 5,500 route miles of metro fiber network connecting approximately 3,300 on-net buildings concentrated in Canada´s top five metropolitan markets.
Zayo´s global Communications Infrastructure now encompasses 110,000 route miles of high-capacity fiber, 53 data centers and connectivity to approximately 350 markets across North America and Europe. Existing and new customers have immediate access to this expansive, high-performance infrastructure.
Zayo will reorganize the Allstream business and assets into two business units. The first, Zayo Canada, will own and operate the Canadian fiber and data center assets and its products and customers will align with those of Zayo.
Zayo Canada will represent approximately half of Allstream´s CDN600 million revenue base. The second business unit will include Allstream´s voice, unified communications and small enterprise businesses and will retain the Allstream brand.
Zayo has selected Michael Strople, president of Allstream, to serve as managing director over both the Canadian business units.
Zayo Group Holdings provides communications infrastructure services, including fiber and bandwidth connectivity, colocation and cloud services to the world´s leading businesses. Zayo provides clients with flexible, customized solutions and self-service through Tranzact, an innovative online platform for managing and purchasing bandwidth and services.