Zayo Snags 360networks, Doubles Network4:12 PM EST Fri. Oct. 07, 2011
In the latest of a string of acquisitions, fiber network service provider Zayo Group will be snapping up 360networks holdings, a wholesale broadband and IP telecom provider based in Seattle, Wash. for an undisclosed sum.
The deal is the largest of Louisville, Colo.-based Zayo ’s 17 acquisitions since 2007, and makes the carrier a national player. 360networks operates 18,500 miles of intercity and metro fiber networks across 70 markets in the central and Western U.S. The fusion of the two carriers will result in a combined network of over 42,000 route miles and almost two million fiber miles.
"The combination with 360networks marks a new chapter for Zayo, one in which we emerge as a national provider of Bandwidth Infrastructure service," Dan Caruso, president and CEO of Zayo Group said in a statement. "The near doubling of the network allows us to provide a greater range of solutions, both in terms of markets served and ability to interconnect services across the markets. The employees of 360networks are doing a fantastic job in growing their business. They will be an integral part of the combined company."
The companies are closely aligned in terms of service offerings. Both Zayo and 360networks focus on bandwidth infrastructure services for large carriers, cablecos, enterprise and public sector customers.
"We view this combination as creating a great opportunity for customers, employees and shareholders," said Chris Mueller, 360networks' Vice Chairman. "The assets and talent of these two companies will create a unique capability to meet the growing needs of bandwidth intensive customers."
Once the deal is complete 360network’s VoIP operations will be spun off into a separate entity, OnVoy Voice Services, which Zayo – also previously a VoIP provider – estabilished in order to focus solely on its network infrastructure.
The deal is expected to be finalized by early 2012.