BOULDER,
Colo.–(BUSINESS WIRE)– Zayo Group Holdings, Inc. (“Zayo”) (NYSE: ZAYO), which
provides mission-critical bandwidth to the world’s most impactful companies, today
announced the completion of its acquisition by affiliates of Digital Colony
Partners (“Digital Colony”) and the EQT Infrastructure IV fund (“EQT” or “EQT
Infrastructure”). The close marks the consummation of the $14.3 billion
transaction, which represents the largest syndicated private equity investment,
the fifth largest Media & Communications LBO and the second largest LBO
overall since 2008.
Under
the terms of the merger agreement, which was approved by Zayo’s stockholders at
a special meeting held on July 26, 2019, Zayo stockholders will receive $35 in
cash per share of Zayo common stock. As a result of the transaction completion,
Zayo is now a privately held company and its common stock has ceased trading on
the NYSE.
Founded
in 2007, Zayo has grown through both organic investment and 45 acquisitions to
become the leading independent provider of communications infrastructure. With
deep, dense metro and long haul networks across the U.S., Canada and Western
Europe, Zayo serves many of the largest and most innovative companies in the
world. Before going public in 2014, Zayo’s original private equity investors
funded the company with just over $1 billion of equity; with today’s
transaction close, that equity is worth over $8 billion, creating material
value for shareholders. Beyond shareholder value, Zayo has also established
itself over the past 13 years as a top employer along Colorado’s front range
and as an active participant in the communities in which it operates.
“We
are excited to launch this new chapter of Zayo, as a private company under the
ownership of a consortium led by two highly experienced infrastructure
investors who have a deep understanding of our business and bring significant
value to Zayo,” said Dan Caruso, Zayo’s chief executive officer. “This is a
great outcome for the company, its former shareholders, our customers and
employees, and our new ownership group. As a private company, we will have
greater flexibility to pursue our long-term strategy and leverage our fiber to
fuel global innovation for our customers.”
“EQT
has a strong track record of supporting market leading companies and we look
forward to working with the entire Zayo organization as it embarks on its next
phase of growth as a private company,” said Jan Vesely, Partner at EQT
Partners, Investment Advisor to EQT Infrastructure. “Zayo is ideally positioned
to meaningfully expand its offerings and services against the backdrop of
accelerating demand for innovative fiber infrastructure solutions.”
“Zayo
has amassed a world class network that is unparalleled in the markets they
serve, supporting the world’s most innovative companies,” said Marc Ganzi, CEO
of Digital Colony and CEO-Elect of Colony Capital. “We believe that fiber
networks are the crucial connective element in the digital infrastructure
ecosystem, and we look forward to partnering with the Zayo team to execute on
the plan of leveraging these powerful assets and driving growth with our
customers across multiple markets and verticals.”
Goldman
Sachs and J.P. Morgan served as financial advisors to Zayo Group in connection
with the transaction and Skadden Arps served as legal counsel. Morgan Stanley
and Deutsche Bank acted as financial advisors to Digital Colony and EQT
Infrastructure and Simpson Thacher served as legal advisor.
For
more information about Zayo, visit zayo.com.
About
Zayo
Zayo
provides mission-critical bandwidth to the world’s most impactful companies,
fueling the innovations that are transforming our society. Zayo’s 133,000-mile
network in North America and Europe includes extensive metro connectivity to
thousands of buildings and data centers. Zayo’s communications infrastructure
solutions include dark fiber, private data networks, wavelengths, Ethernet,
dedicated Internet access, and colocation services. Zayo owns and operates a
Tier 1 IP Backbone and 44 carrier-neutral data centers. Through its Cloudlink
service, Zayo provides low latency private connectivity that attaches
enterprises to their public cloud environments. Zayo serves wireless and
wireline carriers, media, tech, content, finance, healthcare and other large
enterprises. For more information, visit zayo.com.
About
Digital Colony
Digital
Colony Management, LLC (“Digital Colony”) is the global digital infrastructure
investment platform of Colony Capital, Inc. (NYSE: CLNY) and a leading
investor, owner and operator of companies enabling the next generation of
mobile and internet connectivity. Digital Colony was launched in 2018 by
Digital Bridge Holdings, LLC and Colony Capital to bring together Digital
Bridge’s industry, operational and investment expertise in the
telecommunications sector with Colony Capital’s global scale, operating
platform and capital markets access. The inaugural fund, Digital Colony
Partners, LP, closed in May 2019, with $4.05 billion in commitments, making it
the first fund dedicated solely to investing in digital infrastructure. For
more information, please visit www.digitalcolony.com.
About
EQT
EQT
is a differentiated global investment organization with more than EUR 62
billion in raised capital and around EUR 40 billion in assets under management
across 19 active funds. EQT funds have portfolio companies in Europe, Asia and
the US with total sales of more than EUR 21 billion and approximately 127,000
employees. EQT works with portfolio companies to achieve sustainable growth,
operational excellence and market leadership. More info: www.eqtgroup.com.
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