The Zayo Group today announced it is buying Viatel, a wholly owned subsidiary of Dublin-based managed services operator Digiweb Group, for about $102 million.
The transaction will give Zayo, a bandwidth and connectivity provider, access to a 5,220 mile fiber network across eight countries. Zayo will get 12 new metro networks, seven data centers and connectivity to 81 on-net buildings, along with two wholly-owned subsea cable systems connecting routes between London and Amsterdam, and London and Paris.
Zayo is expecting the Viatel businesses being acquired to help contribute a higher proportion of dark fiber revenue.
The all-cash transaction is expected to close by the end of 2015.
The Viatel acquisition comes after a 2015 in which Zayo has already acquired the operating units of Latisys, a colocation and infrastructure as a service (“IaaS”), for $675 million, and the carrier and enterprise segment of IdeaTek Systems for $52 million.
Zayo already counts more than 85,000 miles within its network across the United States and Europe.
On the same day the Viatel acquisition is being announced Zayo is reporting its fiscal first-quarter earnings. Zayo saw sequential growth in revenue and adjusted EBITDA but reported a net loss of $15.2 million for the quarter.
Zayo is choosing today to announce a reorganization within its Strategic Business Segments and Global Sales and Customer Success teams.
The Strategic Business Segments revisions include:
Dark Fiber Solutions, including Metro Dark Fiber, Intercity Dark Fiber and Mobile Infrastructure product groups. Dave Jones, who has been with Zayo since 2012 as the leader of Mobile Infrastructure, will serve as executive vice president, Dark Fiber Solutions.
Network Connectivity Services, including Wavelengths, Ethernet, IP, Video, and SONET product groups. Max Clauson, who has led both IP Services and Wavelengths and has been with Zayo since 2011, will serve as executive vice president, Network Connectivity Services.
Colocation and Cloud Infrastructure will include Zayo’s current Cloud and ZColo product groups. Greg Friedman, who currently leads the Ethernet team and has been with Zayo since 2010, will serve as executive vice president, Colocation and Cloud Infrastructure.
Also reporting to Morley are Dan Enright, executive vice president of Field and Construction Services and Greg Hadlock, executive vice president of Network Management.
- The Global Sales and Customer Success team includes:
- Sales, reporting to Glenn Russo, President
- Sales and Solutions Engineering, reporting to Anthony Lingis, vice president
- Strategic Marketing and Alliances, reporting to Dennis Kyle, senior vice president
- Tranzact, IT, Big Data, Billing and Client Services reporting to Sandi Mays, executive vice president
- Security, reporting to Robert Johnston, senior vice president
In addition to those operations changes, Karl Maier has joined Zayo as president of International and will replace David Howson, who recently announced his decision to leave Zayo after five years with the company; Chris Yost will serve as interim General Counsel, replacing Scott Beer; and Stephanie Copeland, president of zColo, will be resigning.
