Zayo Group (NYSE: ZAYO), an international provider of bandwidth infrastructure and colocation services, has announced the acquisitions of Canadian company Allstream and Ireland-based Viatel. The acquisition of Allstream adds substantial fiber and colocation assets in Canada to Zayo’s infrastructure, while the Viatel acquisition provides Zayo with Pan-European intercity and metro fiber capability via an 8,400-kilometer fiber network across eight countries.
The purchase price of Allstream is CAD $465 million. Allstream has over 9,000 route kilometers of metro fiber network concentrated in Canada’s top five metropolitan markets, in Toronto, Montreal, Vancouver, Ottawa, and Calgary, which connect to approximately 3,300 on-net buildings.
In addition, Allstream has an approximate 20,000-route kilometer long-haul fiber network connecting all major Canadian markets and 10 U.S. network access points. In addition, Allstream operates colocation space in Toronto, Montreal, and Vancouver.
The purchase price of Viatel is approximately €95 million. The company is a wholly owned subsidiary of the Digiweb Group, a full service telecommunications and managed services operator based in Dublin, Ireland.
“Viatel’s long-haul fiber network and colocation 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.”
The Viatel acquisition will provide Zayo with Pan-European intercity and metro fiber capability via an 8,400-kilometer fiber network across eight countries. The transaction will add 12 new metro networks, seven data centers and connectivity to 81 on-net buildings. Two wholly-owned subsea cable systems will provide connectivity on two of Europe’s busiest routes – London-Amsterdam and London-Paris.
“The combination of Zayo and Viatel will provide far greater network reach and growth potential for Viatel’s customers,” said Colm Piercy, CEO of Viatel. “We will continue to offer leading Voice, Data and Hosting solutions in Ireland.”