Zayo, the fiber network operator based in Boulder, CO, has entered into an agreement to acquire Crown Castle’s Fiber Solutions business for approximately $4.25 billion. Zayo is backed by DigitalBridge Group (NYSE: DBRG) and EQT, a global investor based in Stockholm, Sweden.
As part of the transaction, Zayo will gain Crown Castle’s Fiber Solutions business, and the EQT Active Core Infrastructure fund will independently acquire Crown Castle’s Small Cells business for another $4.25 billion. At the end of 4Q24, Crown Castle reported that it had 105,000 smalls cells on air or under contract. Concurrently, Zayo and the Small Cells business will establish a long-term commercial agreement for Zayo to provide fiber to the Small Cells business. The combined value of the Fiber Solutions and Small Cells transactions is $8.5 billion. The transaction is expected to close in the first half of 2026, pending regulatory review and other customary closing conditions.
Zayo states that this acquisition aligns with its strategic focus on investing in fiber infrastructure to support the growth of artificial intelligence (AI) across the United States and promote economic development, enabling enterprises to scale and compete in a digital world. Zayo’s international fiber network spans 146,000 miles across North America, Europe, Brazil, and Japan, with a presence in over 250 metro markets in North America.
Crown Castle’s metro-focused fiber assets complement Zayo’s existing long-haul networks, extending its reach into strategically important geographies and connecting data centers nationwide. With Crown Castle’s assets, Zayo will enhance access to networks that support cloud computing and AI, adding approximately 90,000 route miles of fiber to its network and increasing its overall reach to more than 70,000 on-net locations.
By bolstering its U.S. fiber infrastructure, the company asserts that this transaction aims to improve efficiencies, unlock new opportunities in emerging AI corridors, and create resilient digital infrastructure essential for the nation’s continued economic and technological advancement.
“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,” says Steve M. Smith, Zayo CEO. “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.”
Marc Ganzi, DigitalBridge CEO comments, “With Crown Castle’s robust metro-focused assets, Zayo will be well-positioned to fuel AI adoption, enhance connectivity solutions and accelerate technological progress.”
Jan Vesely, Partner at EQT adds, “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.”
By John Celentano, Inside Towers Business Editor
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