Zayo says that its $90 million investment across Tennessee will bolster important routes and link to major data centers and educational institutions.
Zayo claims to connect 94% of the state’s school districts with managed internet and wide-area networks. It has been active in the state for three decades and is its “top” E-Rate service provider.
No specific timelines or locations in the state were noted in the Zayo press release. The release did say that the expansion will support underserved communities.
“Zayo’s $90 million investment in Tennessee is a testament to our continued commitment to bridging the digital divide and powering the state’s future,” Michael McKerley, the Senior Vice President of Zayo Managed Services said in a press release.
“As the leading provider of managed network connectivity for Tennessee schools — serving 139 of the state’s 147 districts — we understand the critical need for reliable, high-speed internet. This investment will expand our network’s reach, strengthen connectivity for K-12 education, and support the infrastructure needed for Tennessee’s growing digital economy.”
The Tennessee announcement was the second significant announcement by Zayo this month. Earlier, the company announced an agreement to to acquire Crown Castes’ Fiber Solutions. The value of the transaction is approximately $4.25 billion and would add approximately 90,000 route miles and expand its reach to more than 70,000 on-net locations.
The acquisition will be paired with Zayo backer EQT’s acquisition of Crown Castle’s small cell business. The two transactions are valued at about $8.5 billion.
In early February Zayo said it would use asset-backed securitization (ABS) to secure financing by issuing notes valued at over $1.4 billion. The notes were to be secured with fiber infrastructure and long-term customer contracts in the company’s northeast region.
The transaction was expected to close on February 14. The notes would be due in 2030.
