Zayo Sale Possible Following Industry Bids

BOULDER, CO -- After criticism by major shareholders and rumors about a purchase bid from investors last week, Zayo Group Holdings, Inc., the Boulder-based communications infrastructure solutions firm, faces speculation about a possible sale.

On March 6, Bloomberg reported that Digital Colony was weighing a bid to purchase Zayo, according to a person with knowledge of the matter. Bloomberg further noted that Zayo's share price increased 12 percent the previous week after the company said it was "evaluating strategic alternatives."

A March 7 letter directed to Zayo's chairman and CEO, Dan Caruso, Peter Feld of Starboard Value LP, a four-percent shareholder of Zayo's stock, suggested selling the company, stating that it "has produced poor shareholder returns and has consistently traded at a large discount to private market valuations."

Zayo immediately issued a statement in response to the Starboard letter.

The Zayo Board and management team take their fiduciary responsibilities to shareholders seriously," the statement read in part. "This includes actively considering and evaluating opportunities to enhance shareholder value, including an assessment of the Company’s strategic priorities and opportunities, such as potential partnerships, business combinations and other transactions. We are objectively evaluating all options that will further this goal, while at the same time remaining focused on our mission to provide communications infrastructure to the world’s most impactful companies."

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