Zayo Announces Definitive Agreement to Sell zColo Data Center Assets to DataBank
Deal includes sale of 44 data centers in more than 20 markets across the US and Europe
BOULDER, Colo. –
Zayo Group Holdings, Inc. (“Zayo” or “the Company”), today announced that the Company has entered into an agreement to sell zColo, including certain U.S. and European data center assets, to DataBank. The transaction includes the sale of 44 data centers in more than 20 markets across the United States and Europe. DataBank will own and manage the sites, in which Zayo will remain a key anchor customer to provide network connectivity solutions for its customers.
“This agreement represents a material step in our path to focus on our core Networks business, which we first outlined in February 2019,” said Dan Caruso, CEO of Zayo. “With approximately 1,200 of the world’s most important data centers on our network, connectivity to major interconnection hubs and data centers will always remain a core part of our business. This transaction, however, will allow our colocation customers to benefit from the scale of a larger operator and allow Zayo to better align its resources around its fiber and connectivity business.”
This transaction merges the broad collection of zColo’s data centers and network interconnection assets with DataBank’s world-class data center footprint and Tier II market focus. The companies expect to collaborate closely in bringing colocation solutions to Zayo’s fiber customers and network connectivity solutions to DataBank’s colocation and cloud customers.
“The applications that increasingly power our digital economy demand proximity to end users, scalable space and power, and network diversity and neutrality,” said Raul Martynek, CEO of DataBank. “This transaction establishes the preeminent edge colocation platform in the U.S., allowing us to meet these demands across a wide geographic footprint and better serve our cloud, content and enterprise customers. We are excited to welcome zColo customers and employees to DataBank.”
The closing of the deal is subject to customary conditions and regulatory approvals. The transaction is anticipated to close by year-end 2020.
J.P. Morgan is serving as financial advisor to Zayo Group in connection with the transaction and Skadden Arps is serving as legal counsel. DH Capital is acting as the financial advisor to DataBank, and Jones Day is serving as legal advisor.
For more information about Zayo, visit zayo.com.
About Zayo Group
Zayo Group Holdings, Inc. provides mission-critical bandwidth to the world’s most impactful companies, fueling the innovations that are transforming our society. Zayo’s 133,000-mile network in North America and Europe includes extensive metro connectivity to thousands of buildings and data centers. Zayo’s communications infrastructure solutions include dark fiber, private data networks, wavelengths, Ethernet, dedicated internet access and data center connectivity solutions. Zayo owns and operates a Tier 1 IP backbone and through its CloudLink service, Zayo provides low-latency private connectivity that attaches enterprises to their public cloud environments. Zayo serves wireless and wireline carriers, media, tech, content, finance, healthcare and other large enterprises. For more information, visit zayo.com.
DataBank is a leading provider of enterprise-class data center, cloud, and interconnection services, offering customers 100% uptime availability of data, applications and infrastructure. DataBank’s managed data center services are anchored in world-class facilities. Our customized technology solutions are designed to help customers effectively manage risk, improve their technology performance and allow them to focus on their core business objectives. DataBank is headquartered in the historic former Federal Reserve Bank Building, in downtown Dallas, TX. For additional information on DataBank locations and services, please visit www.databank.com or call 1(800) 840-7533.
View source version on businesswire.com: https://www.businesswire.com/news/home/20200929005633/en/
Media: Rebecca Whalen, Corporate Communications
Investors: Brad Korch, Investor Relations