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Zayo Group Acquires Citynet Fiber Network



Dateline City:
Louisville, Colo.

Acquisition Doubles Zayo’s Network

February 18, 2008 – Zayo Group—a regional provider of bandwidth and telecom services—announced it has closed its acquisition of Citynet Fiber Network (CFN), the wholesale division of integrated communications provider Citynet. The deal doubles Zayo’s metro and regional fiber route miles to 17,000, serving more than 1,400 on-net building locations in 12 states.

Tulsa, Okla.-based CFN now becomes part of Zayo Bandwidth, Zayo Group’s fiber-based bandwidth business unit that provides solutions to carriers, web-centric companies, public institutions and enterprises. Zayo Bandwidth services include private line, wavelength, Ethernet, Internet and colocation.

“This event enables the combination of two great networks and two strong teams to better serve our customers,” said John Scarano, COO of Zayo Group and President of Zayo Bandwidth. “Zayo’s network now extends fully across the central and eastern regions of the US and throughout nearly one hundred metropolitan areas, thereby facilitating deep access reach and associated long-term benefits for our customers.”

The CFN network has 8,500 route miles of fiber covering 57 Tier I, II and III markets in 10 states. With the acquisition, Zayo Bandwidth’s network now connects to more local exchange carrier central offices and carrier hotels as well as wireless mobile switching centers. The new network footprint unites Zayo’s strength in various metro markets with CFN’s regional long-haul routes.

The sale affects only the wholesale operations of Citynet. Though terms of the agreement are not being released, Zayo and Citynet both report that the transaction will enable them to focus on their respective strengths—Zayo Bandwidth on providing reliable bandwidth solutions and Citynet Retail on their retail suite of services, including voice, data, internet, network managed services and voice over IP (VoIP).

“The sale of CFN to Zayo marks an important opportunity for Citynet. We can now move forward as a leading regional telecommunications provider in the 12 states that we provide service. Our company will be virtually debt free which will allow Citynet to concentrate on our core retail business activities and future acquisitions,” said Jim Martin, President and CEO of Citynet.

CFN is Zayo’s sixth acquisition since spring of 2007. Throughout the integration process, customers of both companies will continue to experience reliable bandwidth and responsive service as Zayo openly provides network information, technical resources and access to the executive team.

"I've found Zayo to be responsive to our feedback, flexible with their programs and fast with their pricing quotes," said Zayo customer Kent Waletski, Transport Engineer for Alltel Communications, Inc. "They cut through the red tape."

About Zayo Group
Based in Louisville, Colo., Zayo Group ( [2]) is a regional provider of telecom services – including bandwidth, voice and managed services – to carrier, enterprise, SME and government customers. Zayo Group provides its service over a fiber network that spans 95 markets in 12 states. Zayo Group consists of three complimentary business units with combined revenue of $160M.
Zayo Group has strong financial backing from five experienced telecom and Internet investors: Battery Ventures ( [3]), Columbia Capital ( [4]), Centennial Ventures ( [5]), MC Venture Partners ( [6]) and Oak Investment Partners ( [7]). Zayo’s
significant financial backing provides the flexibility to extend and enhance its services and fiber network to support the ever-increasing bandwidth appetite of its customers.

About Zayo Bandwidth
Zayo Bandwidth owns and operates fiber optic networks in the Northeast, Mid-Atlantic and Midwest, providing bandwidth services including private line, wavelength, Ethernet, Internet and colocation. Zayo Bandwidth customers include carriers, web-centric companies, public institutions and enterprises. Zayo’s mission is to be a highly reliable and responsive bandwidth provider in those geographies where it has fiber networks.

About Citynet Retail
Citynet is a growing regional, full service provider of communications services including voice, data, internet, network managed services, and Digital Telephone Service (i.e. Voice over Internet Protocol service). The company specializes in single source, high speed communications services. A one-stop-shop, Citynet offers products and services form the circuit to the desktop for small and medium businesses, along with internet access and Digital Phone Service to business and residential customers. For more information see [8].


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