Telecom M&A: Zayo Group Picks Up Another Fiber Player

Financial terms of the acquisition, announced Tuesday, weren't provided, though Zayo said it would fund the buy through cash on hand. FiberGate is based in Alexandria, Va., and was founded in 1995. Its current network includes 315 on-net buildings and covers the Baltimore, suburban Maryland, Washington D.C. and Northern Virginia areas.

Dan Caruso, CEO of Louisville, Colo.-based Zayo, said the D.C. area is a "uniquely important geography" -- one served by FiberGate in addition to AboveNet, which Zayo Group said in March it would acquire for $2.28 billion.

"The combination of AboveNet's and FiberGate's networks will create an extensive fiber footprint in this strategic bandwidth corridor," Caruso said in a statement.

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Privately-owned Zayo Group, which was founded in 2007 by Caruso and John Scarano, has grown substantially via acquisition, and it expects to close its blockbuster AboveNet buy this summer.

Among other recent M&A moves were a pickup of Arialink, which expanded Zayo's reach into Michigan, and, through its subsidiary zColo, MarquisNet, a data center business in Las Vegas. Counting planned 2012 acquisitions, Zayo will have acquired 20 businesses since its inception.