Last Monday, we announced an agreement to acquire Allstream, a Canadian business with more than 18,000 intercity and metro route miles across Canada. Allstream has metro fiber and colocation facilities concentrated in its top five markets – Toronto, Montreal, Vancouver, Ottawa and Calgary. Pending customary approvals, we expect the transaction to close in the first quarter of calendar year 2016.
This combination will establish Zayo as the only communications infrastructure provider with extensive owned assets that span Canada and the U.S. In addition to serving a thriving infrastructure market in Canada, this expansion will enable a broader reach for our current customers. Calgary is an important market for our energy industry customers, Montreal and Vancouver for media, Toronto for finance and the distribution of Internet content is important for major cities throughout Canada. We have interconnected with Canadian carriers to serve both Canadian and U.S. customers for some time but will soon have the ability to deliver solutions seamlessly across our owned assets. This news follows the recently announced acquisition of Viatel, which includes network assets throughout Western Europe, and the 2014 acquisitions of Geo Networks in the UK and Neo Telecoms in France. Our global footprint will increase by more than 25% — from 87,000 route miles to more than 110,000 route miles pending close of the Viatel and Allstream transactions. Augmenting our own network footprint, we have launched Global Reach, a partnership with international telecommunications providers that enables us to extend our solutions to more than 25 countries.
Our [Zayo’s] global footprint will increase by more than 25% — from 87,000 route miles to more than 110,000 route miles pending close of the Viatel and Allstream transactions.
What does this mean for Zayo’s customers?
Our international capabilities will significantly strengthen our ability to serve our customers wherever they do business. Zayo customers will benefit from this expanded reach, and Allstream customers will be able to choose from a wider range of network solutions to meet their needs for high-quality bandwidth and global connectivity. We will work quickly following the close of these acquisitions to offer Zayo’s product portfolio across our entire footprint. Our Tranzact platform will be central to this effort. Last year, we introduced this innovative online tool, which provides customers with the ability to price, shop and order our infrastructure services as well as manage existing services. Our new footprint will be integrated into Tranzact so that customers will have the ability to evaluate Zayo solutions across our entire network. Tranzact also enables our sales teams to quickly engage customers in designing international solutions. This week’s announcement builds on our track record of providing growth and opportunity for our customers. We look forward to bringing you the full power of our global Communications Infrastructure.