Light Reading

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
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.
Flash Poll
From The Founder
The New IP is actually bigger even than business. Like another hugely important tech that Light Reading is digging into right now, the New IP has the potential to change the world by fundamentally advancing what it is possible for people to achieve with communications.
LRTV Documentaries
The Three Cs of MWC15

3|2|15   |   2:33   |   (0) comments


My visit to this year's Mobile World Congress is going to dominated by three Cs – cloud, cells and coffee.
LRTV Huawei Video Resource Center
Huawei Shares Its Vision of the Future of Mobile Networks Innovations

2|26|15   |   2:30   |   (0) comments


Mobile broadband is changing our lives. It's reshaping the Internet, industry, and society. It allows us to freely connect with one another anytime, anywhere. At this year's Mobile World Congress, Huawei will share its latest insights and newest ideas and technologies that will shape the future of MBB. They will showcase their end-to-end MBB solutions that will ...
LRTV Huawei Video Resource Center
Accelerate Digitizing, Boost Digital Business

2|26|15   |   6:14   |   (0) comments


A new digital revolution is leading us to a better connected world. Together with millions of digital partners, Huawei will help CSPs to build their digital service ecosystem and aggregate a wide variety of digital services. In this video, we find out how Huawei is going to help CSPs implement digital operations.
LRTV Huawei Video Resource Center
The Secret Recipe to Enabling Hyper-Growth Industries

2|26|15   |   3:38   |   (0) comments


With a number of successful cases on network capability exposure, Huawei is going to share the secret recipe to enabling hyper-growth markets with a step-by-step approach.
LRTV Documentaries
BTE 2015 Is Bigger & Even Better

2|25|15   |   03:13   |   (4) comments


This year's Big Telecom Event (BTE) in Chicago is going to provide more opportunities than ever for networking, getting to grips with key industry challenges and opportunities and, equally as important, having some fun.
LRTV Interviews
Light Reading ICT Leaders Roundtable at MWC 2015

2|12|15   |   1:07   |   (2) comments


On Sunday March 1, 2015, Light Reading will host an ICT Leaders Roundtable in partnership with Huawei. At this half-day event, CIOs, analysts and researchers will discuss key industry trends like virtualization in the cloud with a specific focus on new business models. Located at the luxurious Renaissance Hotel near the Fira Barcelona, space is limited so please ...
LRTV Documentaries
Going Green in 2015

2|12|15   |   02:04   |   (0) comments


Energy efficiency is set to be an incredibly hot topic in the telecom industry this year.
LRTV Custom TV
SDN & NFV: Where Are We Going From Here?

2|11|15   |   11:27   |   (0) comments


Vitesse Semiconductor CTO Martin Nuss gives his perspective on why SDN and NFV should be tightly interconnected and how he sees the industry moving forward.
LRTV Documentaries
Time for Gigabit Europe?

2|9|15   |   01:27   |   (4) comments


Gigabit broadband networks are springing up all around the US and they'll soon become more commonplace in Europe.
LRTV Interviews
Brocade Brings New IP Vision to 2020 Vision Executive Summit

2|3|15   |   4:23   |   (0) comments


In December 2014, Light Reading gathered telecom executives in Reykjavik, Iceland to discuss their vision for high-capacity networks through the end of the decade. The intimate, interactive meeting was set against the backdrop of Iceland's spectacular natural beauty. As one of the event's founding sponsors, Brocade's Kelly Herrell shared his company's strategy at ...
LRTV Interviews
Brocade's Kelly Herrell on the New IP

2|2|15   |   12:36   |   (0) comments


In December 2014, Steve Saunders sat down with Brocade VP of Software Networking Kelly Herrell at Light Reading's 2020 Vision executive summit in Reykjavik, Iceland. They spoke about Brocade's approach to the New IP, the future of the telecom industry, and more.
LRTV Huawei Video Resource Center
Dr. Dong Sun Talks About Carriers' Digital Transformation & Huawei’s Telco OS

1|29|15   |   6:28   |   (0) comments


Dr. Dong Sun, Chief Architect of Digital Transformation Solutions at Huawei, discusses how telecom operators can become digital ecosystem enablers and deliver optimal user experiences that are in real-time, on-demand, all-online, DIY and social (ROADS).
Upcoming Live Events
March 17, 2015, The Cable Center, Denver, CO
April 14, 2015, The Westin Times Square, New York City, NY
May 12, 2015, Grand Hyatt, Denver, CO
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 8, 2015, Chicago, IL
June 9-10, 2015, Chicago, IL
June 9, 2015, Chicago, IL
June 10, 2015, Chicago, IL
All Upcoming Live Events
Infographics
Net neutrality, broadband services and the current outlook on data consumption, as presented by the New Jersey Institute of Technology.
Hot Topics
10 Weirdly Useful IoT Devices
Eryn Leavens, Copy Desk Editor, 2/24/2015
Small Cells Enabling Location Services
Sarah Thomas, Editorial Operations Director, 2/25/2015
MWC: Let the Madness Begin
Ray Le Maistre, Editor-in-chief, 2/23/2015
FCC Adopts Title II Rules
Alan Breznick, Cable/Video Practice Leader, 2/26/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Check out Light Reading's interview with Jay Samit, the newly appointed CEO of publicly traded SeaChange International Inc. With a resume that includes Sony, EMI, and Universal, Samit brings a reputation as an entrepreneur and a disruptor to his new role at the video solutions company. Hear what he had to say about the opportunities in video, as well as the outlook for cable, telco, OTT and mobile service providers.
G'day! And welcome to an entirely new feature on Light Reading -- our weekly "CEO-to-CEO" interview.