Zayo Agrees To Buy Latisys For $675 Mln - Quick Facts

(RTTNews) - Zayo Group Holdings, Inc.'s (ZAYO) unit, Zayo Group LLC, has agreed to acquire the operating units of Latisys Holdings, LLC, a colocation and infrastructure as a service provider for $675 million price. The acquisition would expand Zayo's datacenter portfolio to 45 facilities within the U.S., France and the UK.

Latisys provides colocation and IaaS services through eight datacenters across 5 markets such as Northern Virginia, Chicago, Denver, Orange County and London. Its datacenters currently total over 185,000 square feet of billable space and 33 megawatts of critical power with the ability to expand.

The transaction is likely to be funded with senior unsecured indebtedness as permitted by existing debt covenants, and is expected to close within the current quarter.

Latisys generated adjusted EBITDA of around $11.0 million for the quarter ended September 2014 and nearly $4.2 million for November 2014. DH Capital, LLC served as the exclusive financial advisor to Latisys Holdings, LLC.