NEW YORK, May 28 /PRNewswire-FirstCall/ -- FiberNet Telecom Group, Inc. (Nasdaq: FTGX) announced today that it has entered into a definitive Agreement and Plan of Merger with Zayo Group, LLC, a regional provider of bandwidth and telecom services to carrier, enterprise and government customers ("Zayo Group") and Zayo Merger Sub, Inc., a wholly-owned subsidiary of Zayo Group. Each share of FiberNet Telecom Group, Inc. ("FiberNet") common stock issued and outstanding immediately prior to the effective time of the merger will be entitled to receive $11.45 in cash (subject to potential adjustment under the merger agreement). The transaction is subject to the approval of FiberNet's stockholders at a special meeting, FCC and state regulatory approvals, and customary conditions. The transaction is not subject to any financing condition. The Board of Directors of FiberNet approved the agreement and recommended the adoption of the agreement by FiberNet's stockholders. The transaction is expected to be completed during the third quarter of 2009.
FiberNet will solicit superior proposals from third parties until June 17, 2009. There can be no assurance that FiberNet will receive any superior proposals, and it does not intend to disclose developments with respect to this solicitation process unless and until its Board of Directors has made a decision to accept a superior proposal.
About FiberNet Telecom Group, Inc. Celebrating its 10th anniversary, FiberNet owns and operates integrated colocation facilities and diverse transport routes in the gateway markets of New York/New Jersey, Los Angeles, Chicago and Miami, designed to provide comprehensive broadband interconnectivity enabling the exchange of traffic over multiple networks. FiberNet's customized connectivity infrastructure provides an advanced, high bandwidth, fiber-optic solution to support the demand for network capacity and to facilitate the interconnection of multiple carriers' and customers' networks. For additional information about FiberNet, visit FiberNet's website at www.ftgx.com.
About Zayo Group Based in Louisville, Colo., Zayo Group (www.zayo.com) is a regional provider of telecom services - including bandwidth, voice and managed services - to carrier, enterprise, SME and government customers. Zayo Group currently provides its service over a fiber network that spans 129 markets in 23 states. Zayo Group consists of three complementary business units: Zayo Bandwidth, Zayo Managed Services and Onvoy Voice Services.
Important Notice FiberNet plans to file with the Securities and Exchange Commission and mail to its stockholders a Proxy Statement in connection with the transaction. The Proxy Statement will contain important information about FIBERNET TELECOM GROUP, INC., ZAYO GROUP, LLC, the transaction and related matters. Investors and security holders are urged to read the Proxy Statement carefully when it is available.