Wireless infrastructure services company Zayo Group Holdings Inc. (NYSE: ZAYO), backed by GTCR, is acquiring Allstream Inc. from Manitoba Telecom Services Inc. for C$465 million (U.S. $348 million).

Allstream, based in Toronto, provides communication services, including video conferencing, to businesses across Canada. The target has its own fiber network. Allstream has about $449 million in annual revenue and $75 million in adjusted Ebitda. Zayo is funding the purchase with cash and debt. 

“Within today’s Allstream is a robust collection of fiber networks, which are enormously valuable to both Allstream and Zayo customers,” says Zayo Dan Caruso. GTCR invested in Zayo in 2012 by partnering with Caruso, to help the company finance its $2.2 billion acquisition of fiber infrastructure company AboveNet Inc.

RBC Capital Markets, Gibson Dunn & Crutcher LLP and Borden Ladner Gervais LLP are advising Zayo. CIBC World Markets Inc. and TD Securities Inc. provided fairness opinions to Manitoba’s Telecom’s board. Stikeman Elliott is representing the seller.

Earlier in 2015, GTCR invested in pharmacy management software company Transaction Data Systems Inc. and announced plans to sell hospital operator Capella Healthcare Inc. to Medical Properties Trust Inc. (NYSE: MPW).

GTCR won Mergers & Acquisitions M&A Mid-Market Private Equity Frim of the Year Award for 2013.

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