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. Last Updated: 07/27/2016

AboveNet in Fiber Deal

NEW YORK -- Metromedia Fiber Network Inc. said Wednesday it had agreed to acquire AboveNet Communications Inc., a supplier of managed Internet services, in a stock swap worth about $1.55 billion.

Under the deal, expected to be completed in the third quarter, Metromedia will issue 1.175 shares in exchange for each of AboveNet's 31.1 million outstanding common shares.

The companies did not put a value on the transaction. But based on the closing prices of the two stocks on Tuesday, the deal is worth $1.55 billion.

Metromedia is a high-bandwidth fiber optic infrastructure provider. Based on currently announced fiber optic networks, AboveNet will have access to Metromedia Fiber's planned network of more than 1.7 million fiber kilometers in North America and Europe.