Zayo Group buys AboveNet for $2.2B

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NEW YORK (AP) ? Internet services company Zayo Group says it will acquire communications networks company AboveNet for $2.2 billion.

AboveNet’s CEO said the combination of the two companies’ fiber optics networks will better provide bandwidth services for customers.

The news sent AboveNet’s shares up nearly 14 percent in premarket trading on Monday.

AboveNet shareholders will receive $84 per share in cash, a 13 percent premium to the stock’s closing price on Friday.

Privately-held Zayo Group, based in Louisville, Colo., provides telecom and Internet infrastructure services to clients.

White Plains, N.Y.-based AboveNet will have 30 days to solicit other offers. As part of the deal, private equity firm GTCR, a will invest in Zayo.