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Colorado-based Zayo, which provides fiber, bandwidth and telecom
infrastructure to enterprises, said it expects to save over $40
million annually from the acquisition.
The deal is the latest in a series of mergers in the enterprise
communications space as U.S. businesses' burgeoning demand for
data and video fuels a revival in fiber optic services.
Last month, CenturyLink Inc agreed to buy Level 3 Communications
Inc in a $24 billion deal to expand its reach.
Windstream Holdings Inc said earlier this month it would buy
fellow U.S. telecom company EarthLink Holdings Corp in a deal
valued at $1.1 billion to cut costs and better compete with
rivals.
Electric Lightwave, formerly known as Integra Telecom, provides
telecom infrastructure in the western United States, while Zayo
owns fiber networks in cities including New York, Chicago, Paris
and London.
Zayo said it would fund the purchase with cash and debt.
Gibson Dunn & Crutcher LLP was Zayo's legal adviser, while
Latham & Watkins and Gray Plant Mooty provided legal counsel to
Electric Lightwave.
(Reporting by Aishwarya Venugopal and Laharee Chatterjee in
Bengaluru; Editing by Sai Sachin Ravikumar)
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