Infrastructure Services Provider Zayo to Acquire Telecommunications Provider Spread Networks
November 28, 2017
Infrastructure services provider Zayo Group Holdings, Inc. (Zayo) is to acquire telecommunications provider Spread Networks, LLC (Spread Networks). Zayo specializes in communications infrastructure services. These include colocation and cloud infrastructure alongside fiber and bandwidth connectivity. It caters primarily to wireless and wireline carriers, and companies in industries like the media, finance, and healthcare. It has a 126,000-mile network in North America and Europe. The acquisition of Spread Networks will cost Zayo $127 million in what has been reported to be a cash transaction.
Spread Networks, which has headquarters in Ridgeland, Mississippi, United States, was established in 2010. The privately owned company specializes in dark fiber and lit services between greater New York and greater Chicago which offers ultrafast roundtrip transmissions. At 825 fiber miles it claims to have “the shortest and most diverse route of any network between New York and Chicago”.
Spread Networks caters primarily to wholesale carriers, enterprises and financial firms and offers “99.999% reliability”. The acquisition means Zayo’s customers will benefit from the “lowest latency and most direct fiber route between the two cities”- of particular importance to what are two key financial markets.
“Spread constructed this route to provide the fastest possible speed on the shortest possible route,” explained Zayo’s Fiber Solutions CTO and President, Mr. Jack Waters. “This asset is an outstanding complement to our existing network, providing customers with low-latency options to and from the country’s leading centers of finance and commerce. Given the relative simplicity of the business, this will be a straightforward integration with meaningful, near-term synergies.”
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