Large Firm Sophistication – Small Firm Values

Andre Springer

Zayo Group Holdings, Inc.

ZAYO GROUP (ZAYO) SHAREHOLDER ALERT - Andrews & Springer LLC Is Seeking More Cash for Shareholders of Zayo Group Holdings, Inc.    

(Wilmington, DE) Andrews & Springer LLC, a boutique securities class action law firm focused on representing shareholders nationwide, is investigating potential breach of fiduciary duty claims against the Board of Directors of Zayo Group Holdings, Inc. (NYSE: ZAYO) (“Zayo” or the “Company”) relating to the sale of the Company to affiliates of private investment firms Digital Colony Partners (“Digital Colony”) and EQT Infrastructure IV Fund (“EQT”). On May 8, 2019, the parties announced the signing of a definitive merger agreement pursuant to which Digital Colony and EQT will acquire Zayo in a merger in a deal worth $14.3 billion. As a result of the merger, Zayo shareholders are only anticipated to receive $35.00 per share in cash in exchange for each share of Zayo.

Andrews & Springer’s investigation so far has revealed that the consideration Zayo shareholders are expected to receive is inadequate. While the Company claims that shareholders will receive a premium for their shares, the deal consideration is less than the $38 price target set by an analyst on January 29, 2019 at JP Morgan, one of Zayo’s financial advisors in the merger who concluded that $35 was adequate. The $35 per share consideration is also below the $45 per share price target set by analysts at Craig-Hallum on February 8, 2019. Our investigation has also revealed that the process leading up to the announcement of the merger appears to have significant conflicts of interest thus making the process and consideration unfair.