& 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.
From The Founder
Cisco's Conrad Clemson, recently promoted to head up the company's Service Provider Apps & Platforms developments, talks to Light Reading's Founder and CEO Steve Saunders about how he's bringing cloud video, mobile and virtualization together to empower network operators.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Interviews
Masergy: Ability to Adapt Key for NFV

1|16|17   |   6:40   |   (0) comments


Speaking at Light Reading's 2020 Vision in Rome, Masergy's VP, Global Technology, Ray Watson, said agility is key to providing the mix and match NFV-based services that are driving business for the managed service provider today.
LRTV Interviews
Equinix: The Data Explosion

1|13|17   |   4:16   |   (0) comments


At Light Reading's 2020 Vision in Rome, Eric Schwartz, president of EMEA, Equinix, talked about how Equinix is helping its customers manage the influx of data today, and how it's preparing for a future filled with millions of connected IoT devices.
LRTV Interviews
Heavy Reading: The Changing Data Center Landscape

1|12|17   |   6:05   |   (1) comment


At Light Reading's 2020 Vision event in Rome, Heavy Reading's Senior Analyst Roz Roseboro talks about how virtualization is impacting data center evolution and how that evolution is affecting the relationship between service providers, data center operators and public cloud providers.
LRTV Interviews
Boingo: Prepping for Millions of Devices

1|12|17   |   5:07   |   (1) comment


At Light Reading's 2020 Vision in Rome, Boingo's CTO Derek Peterson discusses how wireless operators will address the needs of low-bandwidth and high-bandwidth apps at the same time, the need for more MHz, the impact of IoT and more.
LRTV Interviews
Comcast Shows Off Gig Gateway at CES

1|11|17   |     |   (1) comment


With its largest presence at CES in years, Comcast took the wraps off its long-awaited gigabit gateway and a new platform for managing the home WiFi network. Light Reading Senior Editor Mari Silbey sat down with EVP Chris Satchell to discuss the latest Comcast advance, and met with VP of Product Strategy and Development Andrea Peiro to walk through a demo of the ...
LRTV Interviews
Colt: End-to-End Key for 2017

1|10|17   |   6:21   |   (0) comments


At Light Reading's 2020 Vision Executive Summit in Rome, Nico Fischbach of Colt said having a multi-carrier, end-to-end service proposition is going to be key for 2017 -- and SD-WAN is instrumental in making it happen.
From the Founder
Cisco's Clemson on Mobile Cloud Video

1|9|17   |     |   (1) comment


Cisco's Conrad Clemson, recently promoted to head up the company's Service Provider Apps & Platforms developments, talks to Light Reading's Founder and CEO Steve Saunders about how he's bringing cloud video, mobile and virtualization together to empower network operators. "If you think about where we're going… whether it's a mobile application, or a video ...
LRTV Custom TV
VMware Telco NFV Solutions – Preparing for 5G & IOT

1|9|17   |     |   (0) comments


Shekar Ayyar, EVP & Corporate Strategy/General Manager of Telco for VMware, discusses VMware's Telco NFV solutions role and foundation for the Imminent Arrival of 5G & IOT.
LRTV Interviews
Heavy Reading: Big Video Set to Disrupt

1|6|17   |   4:39   |   (0) comments


At Light Reading's 2020 Vision Executive Summit in Rome, Heavy Reading's Adi Kishore talks about the challenges of managing and monetizing bandwidth-intensive video, and how service providers will need to transform their networks to cope with the big video explosion.
LRTV Interviews
Heavy Reading: IoT Set to Disrupt

1|5|17   |   7:07   |   (0) comments


Heavy Reading's Senior Analyst of IoT, Steve Bell, tells Light Reading how the Internet of Things (IoT) will transform service provider markets, business models and mindsets, and how virtualizing the network core and Fog networking is key to meeting the agility and flexibility demands of IoT in the future.
LRTV Custom TV
Ensemble SmartWAN Explained

1|5|17   |     |   (0) comments


Ray Le Maistre and Prayson Pate, CTO of the Ensemble division at ADVA Optical Networking, discuss the details around the recent Ensemble SmartWAN announcement from ADVA and its potential impact on the SD-WAN movement as it goes virtual.
LRTV Interviews
Telstra Shares Digital Dos & Don'ts

1|4|17   |   3:21   |   (0) comments


At Light Reading's 2020 Vision Executive Summit in Rome, Telstra's Managing Director of EMEA Tom Homer shares his insight into what makes a good partner in today's digital world.
Upcoming Live Events
May 15-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
Hot Topics
Ericsson: 5G Heralds 'New' New Economy
Mari Silbey, Senior Editor, Cable/Video, 1/12/2017
5G: Another Next-Generation Disappointment?
Iain Morris, News Editor, 1/10/2017
CES 2017: WIC's Picks & What Made Us Sick
Sarah Thomas, Director, Women in Comms, 1/10/2017
IBM, FDA Look to Blockchain to Secure Health Records
Scott Ferguson, Editor, Enterprise Cloud, 1/12/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Light Reading founder and CEO Steve Saunders chats with Sportlogiq CEO Craig Buntin about sports data analysis.
Eyal Waldman, CEO of Mellanox Technologies, speaks to Steve Saunders, CEO of Light Reading, for an exclusive interview about the 100 GB cable challenge, cybersecurity and much more.
Animals with Phones
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.