5/8/2019, 4:54 PM (Source: TeleTrader)
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Chart for: EQT Corp

Zayo soars to seven-month high on buyout deal

EQT AB's EQT Infrastructure IV fund and Digital Colony Partners LP struck an agreement to take over ​Zayo Group Holdings Inc. and take it private and the target entity's shares spiked on Wednesday after the announcement to as high as $33.25 on the New York Stock Exchange. The level was last seen on October 5 and compares to the cash deal of $35 per share or $8.2 billion. The enterprise value came in at $14.3 billion, the statement said, as it includes debt.

Digital Colony Management Llc's unit and the affiliate of Investor AB's EQT Partners AB agreed to keep the headquarters at Boulder, Colorado, according to the press release. Shareholders of Zayo, which develops telecommunications infrastructure, won a 32% premium to the volume-weighted price average of the past six months.

Dan Caruso (pictured), chairman and chief executive of the bandwidth provider, said the buyout firms value its fiber infrastructure assets, team and customer base. Digital Colony, based in Los Angeles, highlighted the digital infrastructure portfolio, market coverage and the potential in connectivity and backhaul requirements. The companies said the transaction should close in the first half of next year. Shares were 8.39% higher at $33.19 apiece at 10:39 am ET.

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