Zayo Group Holdings, Inc., which provides mission-critical bandwidth to the world’s most impactful companies, announced this week that its transition to private company is complete. Affiliates Digital Colony and the EQT Infrastructure IV fund acquired the company. The $14.3 billion transaction is the largest syndicated private equity investment since 2008. Zayo stockholders will receive $35 in cash per share of Zayo common stock.
“Zayo has amassed a world class network that is unparalleled in the markets they serve, supporting the world’s most innovative companies,” Digital Colony CEO and Colony Capital CEO-elect Marc Ganzi said in a statement. “We believe that fiber networks are the crucial connective element in the digital infrastructure ecosystem, and we look forward to partnering with the Zayo team to execute on the plan of leveraging these powerful assets and driving growth with our customers across multiple markets and verticals.”
Founded in 2007, Zayo has grown to become a leading independent communications infrastructure provider. The company’s networks span across the United States, Canada and Western Europe and serve some of the biggest and most innovative companies in the world, including Facebook and Google. Prior to going public in 2014, Zayo’s initial private equity investors funded the company with a little more than $1 billion of equity. This week’s deal made that equity worth $8 billion.
Shareholders are not the only ones who’ve benefitted from Zayo’s presence however. The company became one of Colorado’s top employers and has been an active member of the surrounding community. The company plans to stay and grow in Colorado, The Denver Post reports.
“We are excited to launch this new chapter of Zayo, as a private company under the ownership of a consortium led by two highly experienced infrastructure investors who have a deep understanding of our business and bring significant value to Zayo,” Zayo CEO Dan Caruso said in a statement. “This is a great outcome for the company, its former shareholders, our customers and employees, and our new ownership group. As a private company, we will have greater flexibility to pursue our long-term strategy and leverage our fiber to fuel global innovation for our customers.”
“EQT has a strong track record of supporting market leading companies and we look forward to working with the entire Zayo organization as it embarks on its next phase of growth as a private company,” Jan Vesely, Partner at EQT Partners, Investment Advisor to EQT Infrastructure said. “Zayo is ideally positioned to meaningfully expand its offerings and services against the backdrop of accelerating demand for innovative fiber infrastructure solutions.”