US network connectivity and colocation services provider Zayo announced an agreement to buy competitor AboveNet for US$2.2bn.

Once completed, the deal will add a massive amount of US network assets to Zayo’s already large portfolio. AboveNet has some European assets as well.

Zayo president Dan Caruso said Zayo had always admired AboveNet’s business model and believed the merger would boost the company’s value.

“AboveNet and Zayo's business models are closely aligned with a disciplined focus on high bandwidth fiber-based communications services for enterprises, government and carrier customers,” he said.

To finance the purchase, Zayo secured a commitment from Chicago-based private-equity firm GTCR to make an equity investment in the company. Additionally, an existing Zayo investor Charlesbank will invest more, and Morgan Stanley and Barclays will provide debt financing.

AboveNet president and CEO Bill LaPerch said combination of the two companies’ asset would create a dense fiber footprint throughout North America and Europe.

“This new company will be uniquely qualified to meet the expanding needs of enterprise and carrier customers,” LaPerch said.

AboveNet’s network assets include more than 2.3m miles of fiber, with more than 2,800 buildings connected to the network. The company serves all major metros and many second-tier markets in the US. Its European footprint extends across London, Paris, Amsterdam and Frankfurt.

Zayo’s network spans 45,400 fiber-route miles, extending into 70 metro markets in 42 US states and connecting more than 5,100 buildings. The company’s colocation business, zColo, offers space, power and connectivity at 13 sites – each in a separate metro market.