Zayo Group Holdings, Inc. (NYSE: ZAYO), a US provider of Communications Infrastructure services, is to acquire Allstream, Inc., which offers bandwidth and telecom services to business and public sector customers across Canada, for CAD $465m.
Allstream, a wholly owned subsidiary of MTS, Inc., a Canadian provider of telecommunications services, has over 9,000 route kilometers of metro fiber network concentrated in the metropolitan markets of Toronto, Montreal, Vancouver, Ottawa, and Calgary that connect to approximately 3,300 on-net buildings. In addition, the company has an approximate 20,000 route kilometer long-haul fiber network connecting all major Canadian markets and 10 U.S. network access points. In addition, Allstream operates colocation space in Toronto, Montreal, and Vancouver.
Zayo will add Allstream’s fiber and colocation assets to its core network Communications Infrastructure business. The other half of Allstream’s business will be organized into two additional segments:
– Voice and Universal Communications (approximately one-third of Allstream’s revenue), and
– Small Business (primarily enterprise voice).
Each of these will be separated into standalone business units in parallel with the formation of Zayo Canada.