Zayo Group To Buy Electric Lightwave For $1.42 Bln - Quick Facts

(RTTNews) - Zayo Group Holdings, Inc. (ZAYO) announced it has entered into an agreement to acquire Electric Lightwave for $1.42 billion. Electric Lightwave, formerly known as Integra Telecom, provides infrastructure and telecom services primarily in the Western United States. The company 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 said it 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. Zayo expects to close the deal in the first calendar year quarter of 2017.

Zayo said approximately 40 percent of Electric Lightwave's existing revenue aligns with the company'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.