Zayo to Acquire Crown Castle’s Fiber Solutions Business
Zayo has announced a definitive agreement to acquire Crown Castle's Fiber Solutions business for approximately $4.25 billion. The acquisition will add 90,000 route miles of fiber to Zayo's network, expanding its reach to over 70,000 on-net locations.
The transaction, expected to close in the first half of 2026, aims to strengthen critical fiber infrastructure supporting AI growth across the United States. Zayo has invested more than $20 billion in fiber infrastructure over the past five years and plans to continue investing billions to expand the AI ecosystem.
As part of the deal, the EQT Active Core Infrastructure fund will separately acquire Crown Castle's Small Cells business. The total combined value of both Fiber Solutions and Small Cells transactions is $8.5 billion. Zayo and the Small Cells business will enter into a long-term commercial agreement for fiber provision.
Zayo ha annunciato un accordo definitivo per acquisire il business delle Fiber Solutions di Crown Castle per circa 4,25 miliardi di dollari. L'acquisizione aggiungerà 90.000 miglia di rete in fibra al network di Zayo, espandendo la sua portata a oltre 70.000 località on-net.
La transazione, prevista per chiudere nella prima metà del 2026, mira a rafforzare l'infrastruttura critica in fibra a supporto della crescita dell'IA negli Stati Uniti. Zayo ha investito oltre 20 miliardi di dollari in infrastrutture in fibra negli ultimi cinque anni e prevede di continuare a investire miliardi per espandere l'ecosistema dell'IA.
Come parte dell'accordo, il fondo EQT Active Core Infrastructure acquisirà separatamente il business delle Small Cells di Crown Castle. Il valore totale combinato delle transazioni Fiber Solutions e Small Cells è di 8,5 miliardi di dollari. Zayo e il business delle Small Cells stipuleranno un accordo commerciale a lungo termine per la fornitura di fibra.
Zayo ha anunciado un acuerdo definitivo para adquirir el negocio de Fiber Solutions de Crown Castle por aproximadamente 4.25 mil millones de dólares. La adquisición añadirá 90,000 millas de ruta de fibra a la red de Zayo, ampliando su alcance a más de 70,000 ubicaciones on-net.
La transacción, que se espera cierre en la primera mitad de 2026, tiene como objetivo fortalecer la infraestructura crítica de fibra que apoya el crecimiento de la IA en los Estados Unidos. Zayo ha invertido más de 20 mil millones de dólares en infraestructura de fibra en los últimos cinco años y planea seguir invirtiendo miles de millones para expandir el ecosistema de la IA.
Como parte del acuerdo, el fondo EQT Active Core Infrastructure adquirirá por separado el negocio de Small Cells de Crown Castle. El valor total combinado de las transacciones de Fiber Solutions y Small Cells es de 8.5 mil millones de dólares. Zayo y el negocio de Small Cells celebrarán un acuerdo comercial a largo plazo para el suministro de fibra.
자요(Zayo)는 약 42억 5천만 달러에 크라운 캐슬(Crown Castle)의 광섬유 솔루션 사업을 인수하는 최종 계약을 발표했습니다. 이번 인수로 자요의 네트워크에 90,000마일의 광섬유 경로가 추가되어 70,000개 이상의 온넷 위치로 범위가 확장됩니다.
2026년 상반기에 마감될 것으로 예상되는 이번 거래는 미국 전역의 AI 성장 지원을 위한 중요한 광섬유 인프라를 강화하는 것을 목표로 하고 있습니다. 자요는 지난 5년 동안 광섬유 인프라에 200억 달러 이상을 투자했으며, AI 생태계를 확장하기 위해 계속해서 수십억 달러를 투자할 계획입니다.
계약의 일환으로 EQT 액티브 코어 인프라 펀드는 크라운 캐슬의 스몰 셀(Small Cells) 사업을 별도로 인수할 것입니다. 광섬유 솔루션과 스몰 셀 거래의 총 결합 가치는 85억 달러입니다. 자요와 스몰 셀 사업은 광섬유 제공을 위한 장기 상업 계약을 체결할 것입니다.
Zayo a annoncé un accord définitif pour acquérir le business de Fiber Solutions de Crown Castle pour environ 4,25 milliards de dollars. Cette acquisition ajoutera 90 000 miles de fibre à son réseau, étendant sa portée à plus de 70 000 emplacements on-net.
La transaction, qui devrait se conclure dans la première moitié de 2026, vise à renforcer l'infrastructure en fibre critique soutenant la croissance de l'IA aux États-Unis. Zayo a investi plus de 20 milliards de dollars dans l'infrastructure en fibre au cours des cinq dernières années et prévoit de continuer à investir des milliards pour étendre l'écosystème de l'IA.
Dans le cadre de l'accord, le fonds EQT Active Core Infrastructure acquerra séparément le business des Small Cells de Crown Castle. La valeur totale combinée des transactions Fiber Solutions et Small Cells est de 8,5 milliards de dollars. Zayo et le business des Small Cells concluront un accord commercial à long terme pour la fourniture de fibre.
Zayo hat eine endgültige Vereinbarung zur Übernahme des Fiber Solutions-Geschäfts von Crown Castle für etwa 4,25 Milliarden Dollar angekündigt. Die Übernahme wird 90.000 Routenmeilen von Glasfaser zu Zayos Netzwerk hinzufügen und dessen Reichweite auf über 70.000 On-Net-Standorte erweitern.
Die Transaktion, die voraussichtlich in der ersten Hälfte von 2026 abgeschlossen wird, zielt darauf ab, die kritische Glasfaserinfrastruktur zu stärken, die das Wachstum von KI in den Vereinigten Staaten unterstützt. Zayo hat in den letzten fünf Jahren mehr als 20 Milliarden Dollar in Glasfaserinfrastruktur investiert und plant, weiterhin Milliarden zu investieren, um das KI-Ökosystem zu erweitern.
Im Rahmen des Deals wird der EQT Active Core Infrastructure Fund das Small Cells-Geschäft von Crown Castle separat übernehmen. Der gesamte kombinierte Wert der Transaktionen von Fiber Solutions und Small Cells beträgt 8,5 Milliarden Dollar. Zayo und das Small Cells-Geschäft werden einen langfristigen kommerziellen Vertrag über die Bereitstellung von Glasfaser abschließen.
- Strategic acquisition adding 90,000 route miles of fiber network
- Expansion to over 70,000 on-net locations
- Long-term commercial agreement secured for fiber provision to Small Cells business
- Strengthens position in AI and cloud computing infrastructure market
- Enhanced metro-focused fiber assets in strategic geographies
- Significant capital expenditure of $4.25 billion required
- Extended closing timeline until 2026 creates execution risk
- Regulatory approval pending
- Integration challenges of large-scale acquisition
Insights
DigitalBridge's strategic positioning is significantly enhanced through Zayo's $4.25 billion acquisition of Crown Castle's Fiber Solutions business. This transaction represents a major expansion of DigitalBridge's fiber infrastructure portfolio, with Zayo adding approximately 90,000 route miles of fiber and increasing its network reach to over 70,000 on-net locations.
This acquisition aligns perfectly with DigitalBridge's digital infrastructure investment thesis, particularly its focus on AI-enabling assets. The timing is opportune as hyperscalers and enterprises are dramatically increasing their fiber needs to support AI workloads, creating substantial revenue growth opportunities. The complementary metro-focused fiber assets will work synergistically with Zayo's existing long-haul networks, creating a more comprehensive offering for enterprise customers.
The market fundamentals supporting this acquisition are compelling. Fiber infrastructure represents critical, hard-to-replicate assets with high barriers to entry. The exponential bandwidth requirements of AI applications are driving demand for more extensive, higher-capacity fiber networks. This positions Zayo and by extension DigitalBridge to capture significant value from this secular trend.
While the $8.5 billion total transaction value (including the Small Cells business) is substantial, the long-term commercial agreement between Zayo and the Small Cells business creates an additional recurring revenue stream. The expected closing timeframe of H1 2026 suggests a lengthy regulatory review process, but demonstrates confidence in eventually securing necessary approvals.
This acquisition positions Zayo and DigitalBridge at the critical intersection of two transformative trends: the explosive growth of AI and the reindustrialization of American tech infrastructure. By expanding Zayo's fiber footprint with Crown Castle's metro-focused assets, DigitalBridge is addressing a important bottleneck in AI development – the need for ultra-high-capacity, low-latency connectivity between data centers.
The technical implications are substantial. Adding 90,000 route miles of fiber creates a denser network that can better handle the massive data transfers required for AI workloads. The metro-focused nature of Crown Castle's assets complements Zayo's long-haul networks, creating a more complete solution for enterprises and hyperscalers building AI capabilities.
Zayo's $20+ billion investment in fiber infrastructure over the past five years, combined with this acquisition, demonstrates DigitalBridge's commitment to building the foundation for America's AI future. The fiber backbone being assembled will be essential for connecting the next generation of AI data centers, which require orders of magnitude more bandwidth than traditional applications.
The timing of this move is strategically sound. As compute capacity for AI training and inference expands rapidly, the fiber connecting these facilities becomes increasingly valuable. Zayo is positioning itself as the critical connective tissue for the AI economy, with DigitalBridge set to benefit from this first-mover advantage in scaling fiber infrastructure specifically optimized for AI workloads.
Continues Significant Investments in Critical Fiber Infrastructure to Facilitate AI Future and Support Reindustrialization of
Transaction to Add Significant, Complementary Scale to Better Support Enterprise Customers in Key Metro Areas Across the United States
This acquisition advances Zayo’s strategic focus on investing in the critical fiber infrastructure that will support the growth of artificial intelligence (AI) across
By strengthening the United States’ fiber foundation, this transaction will look to drive efficiencies, unlock opportunities in new and growing AI corridors and create the resilient digital infrastructure necessary for the nation’s sustained economic and technological leadership. Zayo has spent more than
“We are strategically investing in expanding and enhancing our country’s critical network infrastructure to meet the demands of hyperscalers, data centers, enterprises and carriers that will facilitate the growing AI economy,” said Steve M. Smith, Chief Executive Officer at Zayo. “This acquisition strengthens our ability to deliver the reliable, low-latency, high-capacity fiber solutions our customers need to scale in an increasingly data-driven world, and furthers our commitment to providing world class customer service and solutions.”
“As AI reshapes industries and accelerates economic transformation, this transaction underscores the vital nature of fiber and the critical role it plays as the backbone of innovation, productivity and market growth,” said Marc Ganzi, Chief Executive Officer of DigitalBridge. “With Crown Castle’s robust metro-focused assets, Zayo will be well-positioned to fuel AI adoption, enhance connectivity solutions and accelerate technological progress. We look forward to continuing to support Zayo as it helps to position
“AI is creating growing demand for data processing power and seamless connectivity that is pushing fiber infrastructure to the center of the global economy. With this transaction, Zayo is taking decisive action to help ensure our country remains competitive on the global stage,” said Jan Vesely, Partner at EQT. “The addition of Crown Castle’s Fiber Solutions business is a strategic move to help fortify the United States’ AI-driven future by delivering the bandwidth, scalability and reliability required for next-generation applications. The companies and nations that lead in AI will be those that invest ambitiously in high-performance digital infrastructure. Zayo is doing exactly that, building the foundation necessary to support the next wave of global innovation, economic acceleration and technological progress.”
Transaction Details
As part of the transaction, Zayo will acquire Crown Castle’s Fiber Solutions business while the EQT Active Core Infrastructure fund will independently acquire Crown Castle’s Small Cells business, as communicated in a separate transaction announcement today. Concurrent with the acquisitions, Zayo and the Small Cells business will enter into a long-term commercial agreement for Zayo to provide fiber to the Small Cells business. The total combined value of the Fiber Solutions and Small Cells transactions is
The transaction is expected to close in the first half of 2026, subject to regulatory review and other customary closing conditions.
Advisors
PJT Partners, J.P. Morgan and UBS Investment Bank served as financial advisors and Simpson, Thacher & Bartlett served as legal advisor to Zayo, DigitalBridge and EQT.
Cautionary Information Regarding Forward-Looking Statements
This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act. Forward-looking statements represent management’s current expectations and are based on information presently available to the Company. Forward-looking statements involve risks, uncertainties and other factors, some of which are beyond the Company’s control, that may cause actual events to differ materially from such forward-looking statements. The Company disclaims any intention or obligation to update or revise forward-looking statements, whether as a result of new information, future events or otherwise.
About Zayo
For more than 17 years, Zayo has empowered some of the world’s largest and most innovative companies to connect what’s next for their business. The Zayo group of companies connects 400 global markets with future-ready networks that span over 18.7 million fiber miles and 146,000 route miles. Zayo’s tailored connectivity solutions and managed services enable carriers, cloud providers, data centers, schools, and enterprises to deliver exceptional experiences, from core to cloud to edge. Discover how Zayo connects what’s next at www.zayo.com and follow us on LinkedIn.
About DigitalBridge
DigitalBridge (NYSE: DBRG) is a leading global alternative asset manager dedicated to investing in digital infrastructure. With a heritage of over 25 years investing in and operating businesses across the digital ecosystem, including cell towers, data centers, fiber, small cells, and edge infrastructure, the DigitalBridge team manages
About EQT
EQT is a purpose-driven global investment organization with
More info: www.eqtgroup.com
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Source: Zayo
FAQ
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