As per the terms of the deal, the purchase consideration will be paid $35 per share in cash and $5.9 billion in debt
Post-buyout, the company will remain headquartered in the current location and continue to execute its strategy. The completion of the transaction is tentatively set for the first half of the calendar year 2020. While the deal has been approved by Zayo’s board of directors, it needs to obtain regulatory approvals and the consent of the company’s shareholders.
Also see: Zayo Group Holdings Q2 2019 Earnings Conference Call Transcript
“Digital Colony and EQT share our vision that Zayo’s Fiber Fuels Global Innovation. Both are experienced global investors in the communications infrastructure space, and they appreciate our extraordinary fiber infrastructure assets, our highly talented team and our strong customer base,” said Dan Caruso, chief executive officer of Zayo.
The ongoing recovery of Zayo shares, after hitting an all-time low in December last year, got a significant boost after Wednesday’s announcement. The stock, which gained 45% so far this year, traded up 8% during the early hours of the session.