Zayo buys Neo Telecoms for French connection

Fiber-optic network services provider Zayo Group, LLC says it will make its latest asset purchase in France. The company has agreed to acquire Paris-based Neo Telecoms, which will add 350 metro route miles in Paris and more than 500 on-net buildings to Zayo’s European network. The current network connects London, Frankfurt, and Amsterdam with the U.S.

Fiber-optic network services provider Zayo Group, LLC says it will make its latest asset purchase in France. The company has agreed to acquire Paris-based Neo Telecoms, which will add 350 metro route miles in Paris and more than 500 on-net buildings to Zayo’s European network. The current network connects London, Frankfurt, and Amsterdam with the U.S.

Terms of the deal were not disclosed.

Neo provides dark fiber, IP, Ethernet, wavelength, and colocation services to European companies, including more than 600 carrier and enterprise customers primarily concentrated in the technology, media, telecom, and finance sectors. It operates nine colocation centers across France, offering more than 36,000 square feet of data center space. It had planned to add another five by 2015. Neo’s annual revenues surpassed 30 million euros in 2013, Zayo says.

“Neo has established a strong bandwidth Infrastructure presence in France, and we believe this acquisition will enable growth through our combined fiber footprint for end-to-end solutions,” said Dan Caruso, president and CEO of Zayo Group. “While we will bring a much expanded capability to the table, we also respect the importance of local relationships and expertise. The two principal founders of Neo, Didier Soucheyre and Florian du Boys, will stay with the combined companies and lead Zayo France, a new business unit focused on that market.”

“Neo has been focused on a very similar Bandwidth Infrastructure product set and is well-aligned with Zayo’s focus on data center connectivity,” added Du Boys. “The combined networks of Neo and Zayo will provide our customers with the same key services, and now access to Zayo’s extensive international network.”

The cash-based transaction is expected to close at the end of the second quarter of 2014.

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