Onvoy sold to Colorado company
By Katharine Grayson, Staff Writer
Minneapolis/St. Paul Business Journal
Thursday, August 23, 2007
Regional telecom firm Onvoy Inc. said Wednesday
it has been acquired by a Colorado bandwidth services company
for an undisclosed amount.
Onvoy, founded in 1998 by a group of independent telephone
companies, will merge its operations with Zayo Bandwidth
following the close of the deal.
St. Louis Park-based Onvoy rapidly expanded its Minnesota
network shortly after its founding. The company raised a $46
million debt financing package in 2002. The round was led by
Soros Private Equity Partners of New York; Soros also invested
$50 million in the firm in 1999. Onvoy has about 230 employees.
Louisville, Colo.-based Zayo was formed in November of last year
by a group of investors. The firm provides bandwidth services
to companies, government agencies and carriers. The company has
reached agreement to acquire three bandwidth providers in
addition to Onvoy.
Zayo said in a press statement it plans to invest in Onvoy's
infrastructure and make the firm a "catalyst for economic growth
within the region."
The deal is expected to close in the fourth quarter.
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