Zayo Group Holdings, Inc. (NYSE: ZAYO) has entered into an agreement to acquire Electric Lightwave, formerly known as Integra Telecom, for USD1.42 billion in cash, the company said.
Zayo anticipates more than $40 million in annual cost synergies to be realized throughout the integration process and will benefit from more than $400 million in net operating loss carryforwards acquired in the transaction.
Approximately 40 percent of Electric Lightwave´s existing revenue aligns with Zayo´s infrastructure-focused business segments and will be rapidly integrated into the core Zayo organization, processes and systems. The remainder, which is a valuable and viable cash-flow generating business, has a customer base that aligns well with Zayo´s Canadian SME and voice businesses.
Gibson Dunn & Crutcher LLP served as legal advisor to Zayo on the transaction. Latham & Watkins and Gray Plant Mooty served as legal advisors to Electric Lightwave.
Electric Lightwave, which provides infrastructure and telecom services primarily in the Western United States, has 8,100 route miles of long haul fiber and 4,000 miles of dense metro fiber in Portland, Seattle, Sacramento, San Francisco, San Jose, Salt Lake City, Spokane and Boise, with on-net connectivity to more than 3,100 enterprise buildings and 100 data centers.
Zayo Group Holdings provides communications infrastructure services, including fiber and bandwidth connectivity, colocation, and cloud services. Customers include wireless and wireline carriers, media and content companies and finance, healthcare, and other large enterprises. Zayo´s 114,500-mile network in North America and Europe includes extensive metro connectivity to thousands of buildings and data centers.