Digital Colony, EQT to buy Zayo for $8.2 billion in cash: Reuters
Summary
U.S. communications infrastructure provider Zayo Group Holdings Inc said on Wednesday it agreed to be sold to investment firms Digital Colony Partners LP and EQT for about $8.2 billion in cash. Zayo operates a 209,214 km fiber network in the United States and Europe to connect data centers and serves wireless and landline phone companies. It stands to benefit from rising demand for bandwidth in their markets, driven by cloud computing and streaming. In March, activist hedge fund Starboard Value LP has urged Zayo to consider a sale after taking a 4 percent stake in the company. The company had earlier rejected acquisition offers, including from a private equity consortium comprising Blackstone Group LP, Stonepeak Infrastructure Partners LP, KKR & Co Inc, I Squared Capital, Charlesbank Capital Partners and GTCR Ltd.