(AP) ? Telecommunications company Zayo Group said Monday it will acquire AboveNet Inc. for $2.2 billion, with Chicago-based GTCR investing in Zayo as part of the deal.
Zayo and AboveNet offer Internet and phone services to companies over fiber-optic networks.
"We have followed the progress of Dan and his leadership team at Zayo for some time and, together, we have been looking for opportunities to do acquisitions in the bandwidth infrastructure domain,? GTCR principal Philip Canfield said in a statement.
?We look forward to working with Dan and all of Zayo?s existing shareholders to build upon their past success in the bandwidth infrastructure domain,? Mr. Canfield said in the statement.
AboveNet's CEO said the combination of the two companies' fiber optics networks will better provide bandwidth services for customers. AboveNet serves government customers and the data-hungry financial, media and health care and Internet industries.
"Over the last five years Zayo has acquired a very impressive set of fiber infrastructure assets," said AboveNet CEO Bill LaPerch. "The combination of AboveNet's and Zayo's assets creates a dense fiber footprint throughout North America and Europe for a bandwidth-hungry world."
AboveNet shareholders will receive $84 per share in cash, a 13 percent premium to the stock's closing price on Friday.
AboveNet's shares gained $10.05, or 13.5 percent, to $84.30 in premarket trading Monday. Shares had ranged from $49.79 to $78.07 in the past 12 months.
White Plains, N.Y.-based AboveNet will have 30 days to solicit other offers.
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