Acquisition adds dense, high-count fibre to Vancouver, British Columbia footprint
BOULDER, Colo. – January 18, 2018 – Zayo Group Holdings, Inc. (NYSE: ZAYO) today announced that it has acquired Vancouver-based Optic Zoo Networks Inc. (Optic Zoo) for CAD $31 million. Optic Zoo owns and operates high-capacity fibre in Vancouver and has achieved a significant penetration of customers, with a focus on the digital media sector.
The transaction strengthens Zayo’s position in Vancouver and Western Canada, adding 103 route miles and more than 100 on-net buildings to Zayo’s Vancouver footprint. The acquisition will deepen Zayo’s customer base, providing the ability to cross sell to a diverse group of U.S. and Canadian customers. Optic Zoo’s high-count fibre, 270 on average, has ample capacity for new and existing customers.
The third largest city in Canada, Vancouver is a global gateway and Canadian business hub. The city is a growing centre for digital media and film, financial services, biotechnology and software development, all large consumers of bandwidth.
“The addition of Optic Zoo, with its pure play assets and innovative team, will complement our Canadian footprint and accelerate our traction in a rapidly growing media and technology hub,” said Jack Waters, CTO and president of Fiber Solutions at Zayo. “Optic Zoo has built a strong and growing business, attracted an impressive customer base and delivered revenue growth rates of more than 20 percent.”
All of Optic Zoo’s revenue, which includes approximately 50 percent fibre solutions, aligns with Zayo’s infrastructure-focused business segments. Optic Zoo is expected to generate CAD $1.9M in annualized EBITDA for the quarter ended March 31, 2018. Zayo expects to achieve approximately CAD $0.5M in annualized cost synergies by year-end 2018 after a relatively straightforward integration process.
The transaction, which closed today, January 18, 2018, was funded with cash on hand and debt. Bank Street Group served as exclusive financial advisor to Optic Zoo in connection with the transaction.
About Zayo Group
Zayo Group Holdings, Inc. (NYSE: ZAYO) provides communications infrastructure services, including fibre and bandwidth connectivity, colocation and cloud infrastructure to the world’s leading businesses. Customers include wireless and wireline carriers, media and content companies and finance, healthcare and other large enterprises. Zayo’s 126,000-mile network in North America and Europe includes extensive metro connectivity to thousands of buildings and data centres. In addition to high-capacity dark fibre, wavelength, Ethernet and other connectivity solutions, Zayo offers colocation and cloud infrastructure in its carrier-neutral data centres. Zayo provides clients with flexible, customized solutions and self-service through Tranzact, an innovative online platform for managing and purchasing bandwidth and services. For more information, visit zayo.com.
Forward Looking Statements
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