Zayo Agrees To Acquire Allstream For C$465 Mln

(RTTNews) - Zayo Group Holdings, Inc. (ZAYO), a provider of Communications Infrastructure services, said it has entered into a definitive agreement to acquire Allstream, Inc., which offers bandwidth and telecom services to business and public sector customers across Canada. The purchase price is C$465 million.

Allstream is a wholly owned subsidiary of MTS, Inc., Canada's fourth largest provider of telecommunications services.

The purchase price represents a pre-synergized adjusted EBITDA multiple of less than five times. Allstream has approximately C$600 million revenue and adjusted EBITDA of about C$100 million.

Zayo is interested in adding Allstream's substantial fiber and colocation assets to Zayo's core network Communications Infrastructure business. Allstream has over 9,000 route kilometers of metro fiber network concentrated in Canada's top five metropolitan markets.

In addition, Allstream has an approximate 20,000 route kilometer long-haul fiber network connecting all major Canadian markets and 10 U.S. network access points. Allstream also operates colocation space in Toronto, Montreal, and Vancouver.