Jan 29 (Reuters) - Zayo Group, a fiber network owner, is currently leading the race to acquire Crown Castle's assets in a deal that may exceed $8 billion, as disclosed by a reliable source to Reuters.
Reportedly, Zayo, backed by Sweden's EQT and DigitalBridge, has surpassed buyout firm TPG in bidding for Crown Castle's assets, according to the anonymous source due to the sensitive nature of the information.
The potential sale would encompass Crown Castle's fiber and small cell enterprises, which offer wireless services and technology, as previously reported by Reuters.
Neither Zayo nor Crown Castle immediately responded to requests for comment from Reuters outside of regular business hours.
This prospective deal emerges amidst an uptick in merger activity within the fiber industry, fueled by the swift expansion of fiber broadband, propelling infrastructure providers to become attractive targets for acquisition.
Crown Castle, headquartered in Houston, Texas, boasts a market value of $38.2 billion and functions as a telecommunications infrastructure provider renowned for operating over 40,000 cellular towers nationwide.
The company leases towers to major wireless carriers like Verizon and AT&T and has expanded its fiber operations through various acquisitions. Nevertheless, the considerable expense associated with developing fiber infrastructure has impacted its financial performance, prompting a potential strategic withdrawal from the sector and cost reductions.