Zayo Group Holdings, Inc. (NYSE: ZAYO) said that it has acquired Vancouver-based Optic Zoo Networks for CAN$31 million to add 103 route miles and over 100 on-net buildings to Zayo's Vancouver footprint. The company closed the transaction on January 18, 2018.
The transaction will secure Zayo's position in Vancouver and Western Canada, and expand its customer base to provide opportunities for cross-selling to a group of varied U.S. and Canadian customers, says the company.
With 270 on average, Optic Zoo's high-count fiber cable network has extensive capacity for current and potential customers. Optic Zoo's customer focus is on the digital media sector, according to Zayo. Vancouver is the third largest Canadian city, and the global gateway is increasingly becoming a business hub for digital media and film, professional services, biotechnology and software development, and all large bandwidth consumers.
Optic Zoo's revenue sources align with Zayo's infrastructure-focused business segments, with fiber solutions making up the majority, according to Zayo. The company expects Optic Zoo will generate CAN$1.9 million in annualized EBITDA for the end of the March 31, 2018 quarter. Zayo also plans to achieve approximately CAN$0.5 million in annualized cost synergies by the end of 2018, following adirect integration process.
"The addition of Optic Zoo, with its pure-play assets and innovative team, will complement our Canadian footprint and accelerate our traction in a rapidly growing media and technology hub," said Jack Waters, Zayo's CTO and president of Fiber Solutions. "Optic Zoo has built a strong and growing business, attracted an impressive customer base and delivered revenue growth rates of more than 20 percent."
Following Zayo's announcement in November that it would buy Spread Networks, which owns and operates an 825-mile, high-fiber count long-haul fiber-optic network between New York and Chicago, this transaction continues to advance Zayo's expansion via acquisition (see "Zayo to buy Spread Networks for $127 million in cash").
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