Zayo Group has acquired Vancouver-based Optic Zoo Networks for CAD $31 million. Optic Zoo owns and operates high-capacity fiber in Vancouver. The company would have achieved a significant penetration of customers, with a focus on the digital media sector.
The transaction would strengthen Zayo’s position in Vancouver and Western Canada, adding 103 route miles and more than 100 on-net buildings to Zayo’s Vancouver footprint. The acquisition would deepen Zayo’s customer base, providing the ability to cross-sell to a diverse group of U.S. and Canadian customers. Optic Zoo’s high-count fiber, 270 on average, has ample capacity for new and existing customers.
The third largest city in Canada, Vancouver is a global gateway and Canadian business hub. The city is a growing center for digital media and film, professional services, biotechnology and software development, all large consumers of bandwidth.
“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, CTO and president of Fiber Solutions at Zayo. “Optic Zoo has built a strong and growing business, attracted an impressive customer base and delivered revenue growth rates of more than 20 percent.”
All of Optic Zoo’s revenue would align with Zayo’s infrastructure-focused business segments, with the majority classified as fiber solutions. Optic Zoo is expected to generate CAD $1.9M in annualized EBITDA for the quarter ended March 31, 2018. Zayo expects to achieve approximately CAD $0.5M in annualized cost synergies by year-end 2018 after a relatively straightforward integration process.
Zayo’s 126,000-mile network in North America and Europe includes extensive metro connectivity to thousands of buildings and data centers. In addition to high-capacity dark fiber, wavelength, Ethernet and other connectivity solutions, Zayo offers colocation and cloud infrastructure in its carrier-neutral data centers.