BOULDER, Colo. – February 23, 2018 – Zayo Group Holdings, Inc. (NYSE: ZAYO) today announced that it has entered into an agreement to sell Scott-Rice Telephone Co., a Minnesota ILEC (incumbent local exchange carrier), for $42 million to New Ulm Telecom, Inc.
Zayo acquired Scott-Rice Telephone as part of its March 2017 purchase of Electric Lightwave. Since the acquisition, it has been managed separately but within Zayo’s Allstream business segment. Scott-Rice Telephone serves residential and business customers in areas of Scott and Rice counties southwest of Minneapolis.
“This transaction represents further progress toward the separation of our Allstream business,” said Matt Steinfort, Zayo’s CFO. “It is consistent with Zayo’s strategic focus on communications infrastructure, and our goal of maximizing the value of our non-core assets.”
The closing of the transaction is subject to regulatory approvals and customary closing conditions, and is expected to occur in the June 2018 quarter. More information will be made available on investors.zayo.com.
About Zayo Group
Zayo Group Holdings, Inc. (NYSE: ZAYO) provides communications infrastructure solutions, including fiber and bandwidth connectivity, colocation and cloud infrastructure to the world’s leading businesses. Customers include wireless and wireline carriers, media and content companies and finance, healthcare and other large enterprises. Zayo’s 127,000-mile network in North America and Europe includes extensive metro connectivity to thousands of buildings and data centers. In addition to high-capacity dark fiber, wavelength, Ethernet and other connectivity solutions, Zayo offers colocation and cloud infrastructure in its carrier-neutral data centers. Zayo provides users with flexible, customized solutions and self-service through Tranzact, an innovative online platform for managing and purchasing bandwidth. For more information, visit zayo.com.
Forward Looking Statements
This press release contains a number of forward-looking statements. Words, and variations of words such as “believe,” “expect,” “plan,” “continue,” “will,” “should,” and similar expressions are intended to identify our forward-looking statements. No assurance can be given that future results expressed or implied by the forward-looking statements will be achieved and actual results may differ materially from those contemplated by the forward-looking statements. These forward-looking statements involve risks and uncertainties, many of which are beyond our control. For additional information on these and other factors that could affect our forward-looking statements, see our risk factors, as they may be amended from time to time, set forth in our filings with the SEC, including our 10-K dated August 22, 2017. We disclaim and do not undertake any obligation to update or revise any forward-looking statement in this press release, except as required by applicable law or regulation.