Investors Embrace AboveNet Decision To Get Acquired

AboveNet, Inc. (NYSE:ABVT) recently topped its record price after taking a decision to get acquired by Zayo Group LLC in a deal valued at $2.2 billion as was unable to find a potential buyer last year.

Zayo Group, which is a closely held company based in Louisville, Colorado with an aim to increase its fiber network in North America and Europe with the takeover. AboveNet, the White Plains, New York-based operator of fiber-optic networks previously in 2011 stopped the progress of a search for a buyer after being incapable to attract a bid of minimum $80 per share, according to two people with information of the matter.

AboveNet’s chief executive officer William LaPerch shared his views about the agreement saying the assets combination of AboveNet and Zayo enables a dense fiber footprint all over North America and Europe for a bandwidth ambitious world.

AboveNet, Inc. (NYSE:ABVT) last session volume of 4.41 million shares was surprisingly higher than its average volume of 170,065.00 shares. The stock after opening at $84.28 hit high price of $84.54 and then closed at $83.74 by scoring +12.78%.

ABVT generated revenue of 472.50 million in the following twelve months and earned $72.70 million. The Company showed a positive 15.39% in the net profit margin and as well as in its operating margin which remained 25.10%. Company’s annual sales growth for the past five year was 14.83%.

The ABVT past twelve months price to sales ratio was 4.65 and price to cash ratio remained 18.56. As far as the returns are concern, the ABVT return on equity was recorded as 12.11% and 9.79% return on investment while its return on asset stayed at 8.46%.

The stock showed weekly upbeat performance of +16.45% which was maintained for the month at +19.10%. Likewise the positive performance for the quarter was recorded as +28.81% and for the year was +37.26% while the YTD performance remained at +28.81%.

March 21, 2012

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