Zayo Group Acquires 360networks, Expands Fiber Network
Zayo Group, which provides telecommunications services to the government and private sectors, has agreed to acquire 360networks. The deal will reportedly come close to doubling Zayo Group’s fiber network.
Zayo’s acquisition of 360networks may have implications for some of the world’s largest wireless carriers, such as AT&T, T-Mobile USA, Verizon Communications and Sprint Nextel Corp., all of which are Zayo customers. Overall, Zayo has clients in 31 different states. According to Zayo Group President and CEO Dan Caruso, the acquisition makes Zayo “a national provider of bandwidth infrastructure service.”
Acquisitions are nothing new for Zayo. The company has acquired 17 different companies since 2007, including the 360networks deal. Zayo Group’s revenue increased almost 200 percent between 2008 and 2010. Most recently, the company reported revenues of $77.8 million and net income of $11 million Q2 2011. The company was also named one of Denver’s fastest-growing private companies in July by the Denver Business Journal.
During the recession of 2008 and 2009, Zayo still managed to attracted funding — raising $128 million in Series B funding.
So where do managed services providers potentially fit into this story? Zayo also offers colocation and data center solutions to service providers.