Zayo reshuffles, agrees to buy Viatel

Zayo Group Holdings, Inc. (NYSE: ZAYO) has reorganized its corporate structure into a pair of principal operating units. It also has announced an agreement to buy Viatel, a European fiber-optic network services provider, for approximately €95 million ($101.6 million).

Zayo Group Holdings, Inc. (NYSE: ZAYO) has reorganized its corporate structure into a pair of principal operating units. It also has announced an agreement to buy Viatel, a European fiber-optic network services provider, for approximately €95 million ($101.6 million).

The company's two new principal operating units are Strategic Business Segments, reporting to co-COO Chris Morley, and Global Sales and Customer Success, reporting to co-COO Matt Erickson. The Strategic Business Segments unit includes:

  • Dark Fiber Solutions, including the metro dark fiber, intercity dark fiber, and mobile infrastructure product groups. Dave Jones, who has been with Zayo since 2012 as mobile infrastructure lead, will manage this segment as executive vice president, Dark Fiber Solutions.
  • Network Connectivity Services, including wavelengths, Ethernet, IP, video, and SONET product groups. Max Clauson will serve as executive vice president, Network Connectivity Services.
  • Colocation and Cloud Infrastructure will include Zayo's cloud and zColo product groups. Greg Friedman will lead this segment as executive vice president.

Dan Enright, executive vice president of Field and Construction Services, and Greg Hadlock, executive vice president of Network Management, also will report to Morley. Beginning with the second quarter of fiscal 2016, Zayo will publicly report as four segments along these lines: Dark Fiber Solutions, Colocation and Cloud Infrastructure, Network Connectivity, and Other.

Meanwhile, the Global Sales and Customer Success unit will include:

  • 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

The company also revealed other executive comings and goings. For example, Karl Maier has joined Zayo as president of International to replace David Howson, who recently announced his decision to leave the company after five years. Reporting to Maier are Alastair Kane, managing director of Zayo U.K. and Ireland, Florian Du Boys, CEO of Zayo France, and Bruce Garrison, senior director of Global Reach.

In addition, Chris Yost will serve as interim general counsel, replacing the departing Scott Beer. Stephanie Copeland, president of zColo, has decided to resign to spend time with her family. A replacement for Copeland was not named.

Meanwhile, the company will expand its European footprint through the Viatel acquisition, an all-cash deal Zayo expects to close by the end of the calendar year. Viatel, a wholly owned subsidiary of the Digiweb Group, operates a pan-European fiber-optic network. The company's intercity and metro fiber infrastructure includes an 8,400-km fiber network across eight countries. The transaction will add 12 new metro networks, seven data centers, and connectivity to 81 on-net buildings to Zayo's existing European footprint. Two wholly owned submarine cable networks will provide connectivity between London and Amsterdam and London and Paris.

The deal does not include Viatel's Irish enterprise business.

"Viatel's long-haul fiber network and colo assets combined with Zayo's existing national UK, France and U.S. networks provides truly international, seamless connectivity for Zayo's existing and new customers," said Dan Caruso, chairman and CEO of Zayo. "Our Pan-European infrastructure capability addresses new growth opportunities, including connectivity to key subsea cable systems delivering traffic to and from high-growth regions such as Asia and Africa."

As recently as last year, Viatel had hoped to be an acquirer rather than an acquiree (see "Viatel promises €125 million expansion").

For more information on high-speed transmission systems and suppliers, visit the Lightwave Buyer's Guide.

More in Mergers & Acquisitions