Zayo wraps up FiberGate acquisition

 

Zayo on Tuesday completed its acquisition of dark fiber provider FiberGate, instantly increasing its fiber and route miles in the Washington, D.C., Northern Virginia, Baltimore, and suburban Maryland area.

By purchasing FiberGate, a deal it announced in June, Zayo immediately adds 399 new route miles and 130,000 fiber miles to its growing network.

The service provider closed the $117 million deal, which was funded from existing cash, on Aug. 31.



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This acquisition has benefits to both Zayo and FiberGate's customers. Besides being able to provide its carrier and business customers an expanded fiber footprint, Zayo can now extend its suite of Wavelengths, Ethernet, IP and SONET to FiberGate's dark fiber customers.

Being able to extend its lit services to FiberGate's established customer is a key aspect of this acquisition. Over the course of its 17 years in operation, FiberGate managed to rack up a large customer base that includes government, large enterprise and carrier customers that they serve in over 315 traditional buildings, carrier hotels, data centers, and cell towers.

The 779-route mile network currently extends into key areas including Baltimore, as well as Howard, Montgomery, Prince Georges, and Frederick Counties in Maryland; Washington, D.C.; and the City of Alexandria as well as Loudoun, Fairfax, and Arlington Counties in Northern Virginia.

Dan Caruso, Chief Executive Officer of Zayo Group, said in a release announcing the completion of the acquisition that they "expect the integration to be completed quickly, making the combined footprint available to all of our customers immediately."

Through its various acquisitions and organic fiber build out efforts, Zayo's network now connects over 9,000 on-net buildings spread over 61,400 route miles in seven countries and 45 U.S. states.



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