Zayo Group (NYSE:ZAYO), an international provider of bandwidth infrastructure and colocation services, has completed the $18.9 million acquisition of Clearview International, a provider of Texas colocation and cloud infrastructure services. Clearview operates two data centers, located at 6606 LBJ Freeway in Dallas and 700 Austin Avenue in Waco, totaling approximately 30,000 square feet of colocation space.
The Clearview acquisition builds on the 66,000 square feet of Dallas data center capacity at 1100 Empire Central Place acquired by Zayo on December 31, 2015. Zayo now owns and operates seven data centers in Texas, and a total of 57 data center facilities in North America and Europe.
“Enterprise, content, and technology customers increasingly require solutions that involve network connectivity, colocation and cloud infrastructure,” said Greg Friedman, executive vice president of Colocation and Cloud Infrastructure, Zayo. “Zayo’s acquisition of Clearview ensures we continue to be well-positioned to capitalize on these opportunities and we expect to exceed a 30 percent internal rate of return on this investment.”
Zayo’s dense fiber backbone in Dallas currently spans more than 3,500 miles. Zayo’s Phoenix-Dallas longhaul fiber build will provide additional connectivity between Dallas and Waco. This network enables Zayo to interconnect the new Clearview data centers to Zayo’s key points-of-presence (PoPs) in its other Texas data centers, including 1950 North Stemmons Freeway in Dallas (Infomart) and 1301 Fanning in Houston.
“Both Clearview’s customers and delivery team will benefit from integrating into Zayo’s global communications infrastructure,” said TJ Karklins, CEO of Clearview. “In turn, the Texas market will also benefit from a strong, high-scale provider of integrated cloud, data center and network solutions.”
The acquisition was funded with cash on hand and will contribute over $2 million in incremental annualized adjusted EBITDA, before the benefit of any realized cost synergies.