Zayo to acquire Crown Castle’s Fiber Solutions for $4.25 billion

Published 13/03/2025, 21:34
Zayo to acquire Crown Castle’s Fiber Solutions for $4.25 billion

BOCA RATON, Fla. - DigitalBridge Group, Inc. (NYSE: DBRG) announced Monday that its portfolio company Zayo has signed a definitive agreement to purchase Crown Castle’s Fiber Solutions business. The deal, valued at approximately $4.25 billion, is set to significantly enhance Zayo’s network infrastructure.

By integrating Crown Castle’s fiber assets, which include about 90,000 route miles of fiber, Zayo’s reach will extend to over 70,000 on-net locations. The acquisition is strategic for Zayo, complementing its existing long-haul network with Crown Castle’s metro-focused offerings. The expanded infrastructure is positioned to better serve the escalating needs for cloud and AI-driven connectivity solutions across various sectors, including hyperscalers, data centers, enterprises, carriers, and communities.

The CEO of DigitalBridge, Marc Ganzi, emphasized the importance of the metro-focused network in meeting the demands of next-generation digital applications. Jonathan Friesel, Senior Managing Director and Head of Fiber at DigitalBridge, also highlighted the transaction’s role in bolstering Zayo’s capacity to support data-intensive applications, ensuring network reliability, and scalability for their customers.

This acquisition aligns with DigitalBridge’s growth strategy, reinforcing its commitment to investing in network infrastructure critical for AI, cloud computing, and enterprise connectivity. DigitalBridge, a prominent investor in digital infrastructure, oversees platforms that operate nearly 300,000 route miles of fiber across 550 markets globally.

The transaction is anticipated to be completed in the first half of 2026, pending regulatory approval and customary closing conditions. The information in this article is based on a press release statement. Based on InvestingPro’s Fair Value analysis, DigitalBridge appears to be overvalued at current levels. Subscribers can access the comprehensive Pro Research Report, which provides detailed analysis of DigitalBridge’s financials, valuation metrics, and growth prospects, along with 8 additional ProTips that could help inform investment decisions.

In other recent news, DigitalBridge Group Inc. has been the focus of several analyst updates following its fourth-quarter earnings report. Raymond James increased the company’s price target to $17.00 from $16.00, maintaining a Strong Buy rating. This adjustment was influenced by a significant beat in fee revenue and fee-related earnings, partially due to $10 million in catch-up fees. Meanwhile, Keefe, Bruyette & Woods (KBW) reduced their price target to $13.50 from $14.00, retaining a Market Perform rating, citing a modest growth in Fee-Earning Equity Under Management (FEEUM) and anticipated gains from DataBank financing.

Citizens JMP reiterated a Market Outperform rating with a steady price target of $16.00, highlighting DigitalBridge’s strategic shift towards digital infrastructure assets under CEO Marc Ganzi. They expect an increase in full fee-generating assets under management throughout 2025. JMP Securities also initiated coverage on DigitalBridge, assigning a Market Outperform rating, amid expectations of a major uptick in digital infrastructure spending. This anticipated increase in industry spending could lead to upward revisions in earnings estimates and valuation multiples for involved companies. These developments underscore DigitalBridge’s ongoing transformation and strategic positioning within the digital infrastructure sector.

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