& cplSiteName &

Zayo Buys UK Fiber Network Operator

Ray Le Maistre
5/16/2014
50%
50%

It may have taken a short breather after a flurry of acquisitions, but Zayo is back on the M&A trail with a takeover deal that will bolster its European assets.

The wholesale services and dark fiber specialist has bought Geo Networks Ltd. for an undisclosed sum, a move that adds 2,100 route miles, including 1,800 around the UK and a route to the Irish capital of Dublin, to Zayo's portfolio, including 100 route-miles of fiber that runs through London's sewers. (See Zayo Acquires Geo Networks.)

The Geo network is hooked up to 587 buildings, including more than 130 data centers and exchanges in the UK. (See Surf's Up for Geo Networks and Geo Completes Fiber Ring Between UK & Ireland.)

While financial details were not released, Geo was known to be up for sale, with a price tag of up to 200 million (US$337 million), according to this Megabuyte analysis.

The Alchemy Investment Plan (Alchemy Ventures) acquired Geo in 2008 for 62 million ($104 million). (See Alchemy Acquires Geo.)

The move comes only weeks after Zayo Group Inc. (NYSE: ZAYO) paid 58 million ($80 million) for Paris-based Neo Telecoms, which runs a 350 route-miles metro fiber network in the French capital, connected to more than 500 buildings, and nine regional collocation centers around France. Neo serves more than 600 carrier and enterprise customers with dark fiber, IP, Ethernet, wavelength, and colocation services.

Zayo gained a foothold in Europe with the $2.2 billion acquisition of AboveNet in 2012 and has since invested in its UK network. (See Zayo Closes AboveNet Deal and Zayo Expands UK Network.)

It then went on a spending spree, buying multiple network operators in North America to build a significant portfolio of data transport infrastructure. (See Zayo Group Buys CoreXchange, Zayo Buys FiberLink, Zayo to Buy Access Communications, Zayo to Buy Litecast, and Zayo Continues Buying Binge With First Telecom.)

Zayo has been on the lookout for European takeover targets for a while, with the senior team in Europe saying all along that it is interested in buying companies, with real business plans and revenues, and not just buying standalone network assets. (See Zayo's Fiber Diet.)

Zayo, which is owned by a consortium of private equity firms, reported revenues of $278 million and a net loss of $43.7 million for the three months ending March 31, 2014 (its fiscal third quarter).

Ray Le Maistre, Circle me on Google+ Follow me on TwitterVisit my LinkedIn profile, Editor-in-Chief, Light Reading

(3)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Ray@LR
50%
50%
Ray@LR,
User Rank: Blogger
7/4/2014 | 7:47:14 AM
Price paid by Zayo for Geo Networks
£175 million, according to Zayo's IPO filing papers...
mendyk
50%
50%
mendyk,
User Rank: Light Sabre
5/16/2014 | 3:07:03 PM
Re: Are we seeing some long-term thinking here?
Exactly -- all clouds have a glass lining, if not a glass ceiling. It's easy to lose sight of the fact that virtualization doesn't exist without baseline reality.
Ray@LR
50%
50%
Ray@LR,
User Rank: Blogger
5/16/2014 | 1:36:10 PM
Are we seeing some long-term thinking here?
The network is valuable, right? Decent fiber connectivity is what will make the cloud work -- there's value in these strands of glass, as long as the owners know where it is (and does everyone know where their assets are and what shape they are in?), and have the right tools to manage it efficiently. 

That, then, is the tricky bit.... but Zayo's owners clearly are taking a long-term view on these assets, which seems to make sense.
Featured Video
From The Founder
Light Reading is spending much of this year digging into the details of how automation technology will impact the comms market, but let's take a moment to also look at how automation is set to overturn the current world order by the middle of the century.
Flash Poll
Upcoming Live Events
November 1, 2017, The Royal Garden Hotel
November 1, 2017, The Montcalm Marble Arch
November 2, 2017, 8 Northumberland Avenue, London, UK
November 2, 2017, 8 Northumberland Avenue London
November 10, 2017, The Westin Times Square, New York, NY
November 16, 2017, ExCel Centre, London
November 30, 2017, The Westin Times Square
May 14-17, 2018, Austin Convention Center
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
Muni Policies Stymie Edge Computing
Carol Wilson, Editor-at-large, 10/17/2017
'Brutal' Automation & the Looming Workforce Cull
Iain Morris, News Editor, 10/18/2017
Is US Lurching Back to Monopoly Status?
Carol Wilson, Editor-at-large, 10/16/2017
Pai's FCC Raises Alarms at Competitive Carriers
Carol Wilson, Editor-at-large, 10/16/2017
Worried About Bandwidth for 4K? Here Comes 8K!
Aditya Kishore, Practice Leader, Video Transformation, Telco Transformation, 10/17/2017
Animals with Phones
Selfie Game Strong Click Here
Latest Comment
Live Digital Audio

Understanding the full experience of women in technology requires starting at the collegiate level (or sooner) and studying the technologies women are involved with, company cultures they're part of and personal experiences of individuals.

During this WiC radio show, we will talk with Nicole Engelbert, the director of Research & Analysis for Ovum Technology and a 23-year telecom industry veteran, about her experiences and perspectives on women in tech. Engelbert covers infrastructure, applications and industries for Ovum, but she is also involved in the research firm's higher education team and has helped colleges and universities globally leverage technology as a strategy for improving recruitment, retention and graduation performance.

She will share her unique insight into the collegiate level, where women pursuing engineering and STEM-related degrees is dwindling. Engelbert will also reveal new, original Ovum research on the topics of artificial intelligence, the Internet of Things, security and augmented reality, as well as discuss what each of those technologies might mean for women in our field. As always, we'll also leave plenty of time to answer all your questions live on the air and chat board.

Like Us on Facebook
Twitter Feed
Partner Perspectives - content from our sponsors
The Mobile Broadband Road Ahead
By Kevin Taylor, for Huawei
All Partner Perspectives