Purchase further strengthens Zayo’s expansive fibre and colocation portfolio on the West Coast
BOULDER, Colo. – May 4, 2017 – Zayo Group Holdings, Inc. (NYSE: ZAYO) completed the $12 million acquisition of KIO Networks’ San Diego data centres. The two data centres, located at 12270 World Trade Drive and 9606 Aero Drive, total more than 100,000 square feet of space and 2 megawatts (MW) of critical, IT power, with additional power available. The acquisition builds on Zayo’s continued growth on the West Coast, which includes extensive network assets from Electric Lightwave and recently announced data centres in Santa Clara and Los Angeles.
Zayo has experienced accelerated demand for data centre and interconnection services in San Diego, fuelled by customers in IT, healthcare and professional services. The acquisition of Kio’s data centres not only provides crucial capacity to meet this demand, but also an embedded revenue base that supports the financial profile of the deal. Zayo’s pre-synergy acquisition multiple is 9.6x LQA EBITDA.
The San Diego facilities will provide extensive interconnection and access to Zayo’s fibre backbone in California, which now encompasses more than 8,000 route miles. Zayo’s high-count fibre also connects to multiple landing stations providing subsea cable access up the California coast and to the Asia Pacific (APAC) region.
“California is an important hub of the global economy, and this acquisition further strengthens Zayo’s position as a leading infrastructure provider,” said T.J. Karklins, senior vice president of Zayo’s zColo business segment. “We now have zColo data centres in all of California’s leading metros, creating a strong chain up the West Coast which extends to Seattle. Customers increasingly require solutions that require network connectivity, colocation and cloud infrastructure. Zayo offers all three at scale.”
For more information, please visit zayo.com.
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, customised 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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