AboveNet shareholders give OK to $2.3B acquisition by Zayo Group of Louisville

AboveNet Inc.'s shareholders have voted in favor of the fiber-optic networks provider's sale to Louisville-based Zayo Group, officials said Tuesday, a day when the locally based bandwidth company separately announced its 21st acquisition.

Zayo's $2.3 billion acquisition of AboveNet would still need to gain regulatory approvals and clear customary closing conditions. The deal still is expected to close by the middle of this year.

The privately held Zayo has secured letters of commitment for a $3 billion debt facility to fund the acquisition, officials disclosed in a filing made Monday with the Securities and Exchange Commission.

AboveNet's announcement of the shareholder OK came hours after Zayo Group said it reached an agreement to acquire FiberGate Inc., a Washington, D.C.-based fiber-optic provider. The transaction would result in the addition of 130,000 fiber miles to Zayo's network around D.C. and add 315 buildings, Zayo officials said.

June 5, 2012

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