ZenFi Networks to merge with Cross River Fiber
25 April 2018 | Natalie Bannerman
ZenFi Networks and Cross River Fiber are merging to create a new infrastructure provider in the New York and New Jersey Metro areas.
Speaking about the merger plans, Ray LaChance, CEO of ZenFi Networks, said: “The merger of ZenFi Networks and Cross River Fiber allows us to scale our communications infrastructure portfolio across the region, providing a robust fibre and colocation platform enabling the deployment of a wide range of digital services by mobile network operators, telecommunications service providers and large enterprises.”
The newly merged company will have a total of approximately 700 route miles of fibre optic network, 10 on-net buildings, 49 colocation facilities, 1,700 outdoor wireless locations with more than 3,000 under contract.
“The combination enhances our network reach, deepens our product portfolio, and delivers a next generation network infrastructure that is the foundation of tomorrow’s communications networks. In addition, our partnership with Ridgemont Equity Partners further strengthens ZenFi Network’s financial position by providing access to additional capital to continue to deliver on our vision of building the most pervasive and high capacity connectivity platform in the region,” continued LaChance.
Under the terms of the undisclosed agreement the ZenFi Networks and Cross River Fiber management teams will continue jointly lead the combined company with support from Ridgemont Equity Partners, a private equity firm and majority shareholder of Cross River Fiber.
“While both companies have achieved great success to date, as a combined business, our geographic footprint and product capabilities are greatly expanded,” added Vincenzo Clemente, CEO of Cross River Fiber. “We can now offer custom telecommunications solutions in New York, New Jersey and beyond to more wireless mobility, carrier and enterprise customers than ever before.”
The deal is due to close later this year subject to the usual regulatory approvals and no transaction details have been given. Webster Bank and CoBank will provide debt financing for the merger.
“Ridgemont Equity Partners originally partnered with Cross River Fiber in 2014,” said George Morgan, partner at Ridgemont Equity Partners. “We have known the ZenFi Networks management team for many years and are thrilled that the companies are joining forces. The merger is a natural progression for both ZenFi Networks and Cross River Fiber as the companies have complementary markets and service offerings. This new partnership with ZenFi Networks marks the start of an exciting chapter of expansion and innovation and we are very pleased to remain actively involved in this next stage of growth.”