Zayo certainly has a bottomless appetite for metro fiber. With the Arialink deal on the books for just one month and the AboveNet deal set to close in the next month or two, the company struck yet again with a big Mid-Atlantic purchase. Zayo said today that it is buying privately held FiberGate, boosting its presence in Washington DC and the surrounding region in a big way.
FiberGate operates 650 route miles and 130,000 fiber miles across the region (i.e. a fiber count of 200), hooking up 315 buildings along the way including both the major data centers in Northern Virginia and minor federal sites like the White House, Pentagon, and Andrews Air Force Base according to the company's website. That footprint will fill out Zayo's current relatively basic DC metro area assets very nicely, and even more nicely when added to the Abovenet assets after that deal closes.
FiberGate is strictly dark fiber as currently operated, but you can be sure that Zayo has more extensive plans in mind for the assets. The purchase is expected to close by the end of the third quarter.
That's four deals now in the first half of 2012 alone, including the MarquisNet purchase at the beginning of the year. Are they done for now? They certainly will have their hands full for the rest of the year with the integration work they've lined up so far. But Caruso is a man on a mission, and he seems to like these prices - so another deal or two aren't out of the question. Integrating a pure dark fiber asset like this is much easier than a more complicated lit business.
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