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Investment firms to take telecoms infrastructure provider Zayo private for $8.2bn

May 08, 2019 / SUPANTHA MUKHERJEE

US communications infrastructure provider Zayo Group Holdings said on Wednesday it had agreed to be taken private by investment firms Digital Colony Partners and EQT for about $8.2bn in cash. The deal value of $35 per share is at a premium of 14.3% to Zayo's closing price on Tuesday. Shares of Zayo were up 8% at $33.13. The deal is valued at more than $14bn, including Zayo's $5.9bn debt. Zayo operates a 209,214km fiber network in the US and Europe to connect data centres 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. The company, which went public in 2014, has been under pressure from activist hedge funds such as Starboard Value, which in March urged Zayo to consider a sale after taking a 4% stake in the company.