Zayo Acquires 360networks in Fiber Deal

Zayo Group will acquire 360networks in a deal that combines Zayo’s metropolitan fiber networks in 60 U.S. markets and 360networks’ intercity fiber network spanning the central and western United States. 360networks will be the largest of the 17 acquisitions made by Zayo since its inception in 2007.

“The combination with 360networks marks a new chapter for Zayo, one in which we emerge as a national provider of Bandwidth Infrastructure service,” said Dan Caruso, President and CEO of Zayo Group. “The near doubling of the network allows us to provide a greater range of solutions, both in terms of markets served and ability to interconnect services across the markets.”

360networks operates more than 18,500 route miles of intercity and metro fiber network across 22 states and British Columbia. The company’s inter-city network interconnects over 70 markets across the central and western United States, including 24 existing Zayo fiber markets and a number of new markets such as Albuquerque, Bismarck, Des Moines, San Diego, San Francisco and Tucson.  In addition to its intercity network, 360networks operates over 800 route miles of metropolitan fiber networks across 25 markets, including Seattle, Denver, Colorado Springs, Omaha, Sacramento, and Salt Lake City.   The resulting combined fiber network will total over 42,000 route miles and nearly two million fiber miles.

“We view this combination as creating a great opportunity for customers, employees and shareholders,” said Chris Mueller, 360networks’ Vice Chairman.  “The assets and talent of these two companies will create a unique capability to meet the growing needs of bandwidth intensive customers.”

“The 18,000 mile intercity fiber network of 360Networks will act to hook up most of Zayo’s more disconnected fiber assets across the western US,” writes Rob Powell at Telecom Ramblings. “In fact, what this does is give Zayo a truly transcontinental presence, connecting to their eastern longhaul network at Chicago.  Much of this fiber derives from the former Touch America buildout, and is rather unique.  There is also dark fiber that 360Networks hasn’t lit yet connecting both Chicago and Dallas to New Orleans which I think Zayo will surely invest in lighting.”

The transaction, subject to customary approvals, is expected to close by early 2012. Financial terms were not disclosed.

zColo is the colocation arm of Zayo Group, and provides160,000 square feet of data center colocation space in New York, Newark, Nashville, Los Angeles, Memphis, Tenn, Plymouth, Minn and three cities in Ohio – Cincinnati, Cleveland and Columbus . It manages the meet-me room at 60 Hudson Street, one of the premier carrier hotels in New York, following its acquisition of FiberNet Telecom in 2009.

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About the Author

Rich Miller is the founder and editor at large of Data Center Knowledge, and has been reporting on the data center sector since 2000. He has tracked the growing impact of high-density computing on the power and cooling of data centers, and the resulting push for improved energy efficiency in these facilities.

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