By Lisa Kerner
Charlotte, N.C., May 29 - FiberNet Telecom Group, Inc. announced that it agreed to be acquired by Zayo Group, LLC for $11.45 per share in cash.
The transaction is expected to close in the third quarter subject to approval by FiberNet stockholders, regulatory approvals and other customary closing conditions, according to a FiberNet news release.
FiberNet said it will solicit superior proposals from third parties until June 17.
A termination fee of $25 million is included in the merger agreement, according to a form 8-K filed with the Securities and Exchange Commission.
New York-based FiberNet provides interconnection services enabling the exchange of voice, video and data traffic between networks.
Zayo Group is a regional provider of bandwidth and telecom services to carrier, enterprise and government customers. The company is located in Louisville, Colo.
| Acquirer: | Zayo Group, LLC
|
| Target: | FiberNet Telecom Group, Inc.
|
| Announcement date: | May 28
|
| Price per share: | $11.45
|
| Termination fee: | $25 million
|
| Expected closing: | Third quarter
|
| Stock price of target: | Nasdaq: FTGX: $9.94 on May 27
|
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