Zayo Acquires Manitoba Telecom’s Allstream for $350 Million

Zayo Group Holdings Inc., a U.S. telecommunications infrastructure owner, agreed to buy Manitoba Telecom Services Inc.'s Allstream unit for C$465 million in cash ($350 million), adding a fiber-optic network concentrated in Canada’s largest metropolitan markets.

Zayo bought Allstream for its fiber footprint in Toronto, Montreal, Vancouver, Ottawa and Calgary, which connect to 3,300 buildings, the Boulder, Colorado-based company said in a statement Monday. The deal came after interest from a “large number of potential buyers,” MTS said in a statement.

The price is higher than expected, Phillip Huang, a Toronto-based analyst with Barclays Plc, said in a note to clients ...