DigitalBridge Group to Acquire Zayo’s Fiber Solutions

DigitalBridge Group Acquisition of Zayo

News Summary

DigitalBridge Group is poised to acquire Zayo’s fiber solutions for $4.25 billion, expanding its internet infrastructure footprint across the U.S. This deal will cover 90,000 route miles of fiber and enhance connectivity for cities, carriers, and businesses. The acquisition reinforces the growing demand for faster internet driven by advancements in AI and cloud technologies, with a completion timeframe expected in the first half of 2026, pending regulatory approval.

Big Moves in Boca Raton: DigitalBridge Group to Acquire Zayo’s Fiber Solutions

In the bustling city of Boca Raton, big news is making waves in the tech world! DigitalBridge Group, a well-known private equity firm based in sunny South Florida, is all set to acquire Zayo, a leading fiber solutions business, for a staggering 4.25 billion dollars. This deal signals a major step forward in strengthening internet infrastructure across the United States. Are you ready for a fast lane in internet services?

The Deal Details

So, what’s the scoop on this eye-popping acquisition? DigitalBridge plans to take over 90,000 route miles of fiber, expanding Zayo’s already impressive network out to more than 70,000 locations. This move will create a ripple effect, enhancing internet services not just for data centers and businesses but also for carriers, cities, and rural areas all over the country. Clearly, the demand for faster internet—driven by booming technologies like AI and cloud computing—is creating a perfect storm for enhancements in internet services.

Looking Towards the Future

The acquisition is on track to close in the first half of 2026, but it still requires some regulatory thumbs up. This isn’t the first time DigitalBridge has laid down big bucks in the internet space. Just a few years ago, in 2020, it partnered with EQT to snag Zayo, and now they’re gearing up for a further push in this tech-savvy arena.

In conjunction with the Zayo acquisition, EQT’s infrastructure fund will also be acquiring Crown Castle’s Small Cells business, making the total combined deal worth an eye-watering 8.5 billion dollars. This is huge news in the fiber optics realm, particularly since Crown Castle had considered selling off its fiber assets last year amid pressures from investors concerned about performance.

Zayo’s Investment and Expansion

Over the past five years, Zayo has poured more than 20 billion dollars into expanding its fiber infrastructure across the U.S. This commitment to growth shows no signs of slowing. The CEO of Zayo emphasized that this acquisition significantly boosts their capacity to deliver reliable and low-latency fiber solutions that are essential in today’s data-driven world.

Financial Insights

Now, let’s take a peek at some financials. DigitalBridge’s revenue fell from more than 821 million dollars in 2023 to 607 million dollars last year, which is a drop of over 25 percent. However, there’s a silver lining—profits tripled, jumping from 45 million dollars in 2023 to 147 million dollars in 2024, thanks in part to a savvy reduction in expenses amounting to 55 million dollars.

More Growth on the Horizon

Not stopping at fiber acquisitions, DigitalBridge is also making headlines with other strategic moves. In December 2023, its portfolio company, Vertical Bridge, closed a 3.3 billion dollars deal with Verizon for over 6,300 U.S. wireless communication towers. Earlier that same year, they acquired a 75.6% stake in JTower, a company based in Japan, for around 465 million dollars, alongside adding Yondr Group from London to their portfolio.

The New Headquarters

As the company gears up for these thrilling expansions, they’re making moves closer to home as well! DigitalBridge currently resides in a spacious office at 750 Park of Commerce Drive and plans to transition to a new headquarters with a whopping 79,141 square feet of office space in Sundy Village, Delray Beach. This transition is as much about expansion as it is about creating a stimulating environment for innovation.

A Global Network of Fiber

With the recent moves, DigitalBridge now manages nearly 300,000 miles of fiber data across an impressive 550 markets globally, setting them up for a vibrant future in internet solutions. As more and more businesses stack on the need for efficient and swift internet—especially with the surge in AI and cloud computing—the approach is primarily about ensuring everyone has quality connectivity. Buckle up, internet users; exciting changes are on the horizon!