LOUISVILLE, CO and ALEXANDRIA, VA – June 5, 2012 – Zayo Group announces it has executed a definitive agreement to acquire FiberGate, Inc., a Washington, D.C. metro area provider of Dark Fiber services. The FiberGate acquisition adds 130,000 fiber miles to Zayo’s metro network in and around the nation’s capital. The current FiberGate network also includes 315 on-net buildings and two recently completed expansions to Frederick and Baltimore, Maryland.
“The Washington, D.C. / Northern Virginia area is a uniquely important geography for government, data centers and Internet connectivity,” says Dan Caruso, Chief Executive Officer of Zayo Group. “The combination of AboveNet’s and FiberGate’s networks will create an extensive fiber footprint in this strategic bandwidth corridor.”
“I am proud of the business we have built including great customer relationships and an extensive fiber network,” says Bill Boyle, CEO of FiberGate, who co-founded the business in 1995 and has been CEO from inception. “Government has long been our sweet spot, but in recent years we have broadened our reach to carriers and enterprises.”
Dark Fiber is FiberGate’s only product and the network covers one geographic region – Baltimore, suburban Maryland, Washington, D.C. and Northern Virginia. FiberGate’s record keeping, particularly on their fiber routes and inventory, are among the best that Zayo has seen in its 19 acquisitions. “The simplicity of FiberGate’s business model combined with its excellent inventory data makes it a straightforward business to integrate,” emphasized Caruso.
The transaction, subject to customary approvals, will be funded from cash on hand and is expected to close by the end of the third quarter, 2012. Zayo previously announced its agreement to acquire AboveNet which is anticipated to close this summer.
Waller Capital Partners served as the exclusive financial advisor to FiberGate on the transaction.