AboveNet Acquired by Zayo Group For $2.2B, 13% Premium
Shares of AboveNet (NASDAQ: ABVT) are seeing much strength during Monday's trading session after the company announced it would be acquired by Zayo Group in a transaction valued at about $2.2 billion.
Both company's boards of directors have approved a definitive agreement under which Zayo will acquire AboveNet for approximately $2.2 billion. Under the terms of the agreement, each share of AboveNet common stock issued and outstanding immediately prior to the transaction will be entitled to receive $84.00 per share in cash, representing a 13% premium over AboveNet's closing price on March 16, 2012 and a 21% premium over the average closing stock price for the past 60 days.
"AboveNet and Zayo's business models are closely aligned with a disciplined focus on high bandwidth fiber-based communications services for enterprises, government and carrier customers," said Dan Caruso, President and CEO of Zayo Group. "We have admired AboveNet's business model and results and believe the combination will create value for customers, employees and investors."
"Over the last 5 years Zayo has acquired a very impressive set of fiber infrastructure assets," said Bill LaPerch, President and CEO of AboveNet. "The combination of AboveNet's and Zayo's assets creates a dense fiber footprint throughout North America and Europe for a bandwidth hungry world. This new company will be uniquely qualified to meet the expanding needs of enterprise and carrier customers."
Currently, shares of AbvoeNet are trading up over 13% at $84.39 per share.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.