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Press Release -- November 28th, 2017
Source: Zayo Group


Acquisition provides Zayo with lowest latency route between New York and Chicago
BOULDER, Colo. – November 27, 2017 – Zayo Group Holdings, Inc. (“Zayo”) (NYSE: ZAYO) today announced it has entered into a definitive agreement to acquire Spread Networks for $127 million in cash. Spread Networks is a privately-owned telecommunications provider that owns and operates a 825-mile, high fiber count long haul route connecting New York and Chicago.

The acquisition will provide Zayo’s customers with the lowest latency and most direct fiber route between the two cities and additional physical path diversity. This path is particularly important to financial services customers who have trading operations in the key financial markets of New York and Chicago. When combined with Zayo’s fiber routes from Seattle to Chicago and San Francisco to Chicago, many other verticals including content, media and cloud providers benefit from the low-latency coast to coast network. Traffic to and from Asia, which connects through cable landing stations in the Pacific Northwest, are also express connected via the combination of Zayo existing fiber routes and the Spread route.

The high-fiber count route, which currently serves more than 60 customers, has ample capacity for new customers. Of the 432 fibers available on the route, less than 25 percent are utilized today and the acquisition provides Zayo with overpull rights and additional conduit. The route connects 755 Secaucus Rd. in Secaucus, NJ and 1400 Federal Blvd. in Carteret, NJ to 350 Cermak Rd. in Chicago, IL, with additional connectivity enabled by Zayo’s existing network. Zayo will use the acquired assets to provide a low-latency wavelength route from Seattle to New York.

“Spread constructed this route to provide the fastest possible speed on the shortest possible route,” said Jack Waters, CTO and president of Fiber Solutions at Zayo. “This asset is an outstanding complement to our existing network, providing customers with low-latency options to and from the country’s leading centers of finance and commerce. Given the relative simplicity of the business, this will be a straightforward integration with meaningful, near-term synergies.”

The all-cash transaction is expected to be funded with cash on hand and debt and is expected to close in the first calendar quarter of 2018, subject to customary closing conditions. For the quarter ending December 31, 2017, Spread Networks is expected to generate $22.8 million in annualized revenue and $7.5 million in annualized EBITDA. Zayo expects to reach $10.5 million in annualized EBITDA from the Spread acquisition by the September 30, 2018 quarter through cost synergies and organic growth.

For more information about Zayo, please visit

About Zayo Group

Zayo Group Holdings, Inc. (NYSE: ZAYO) provides communications infrastructure services, including fiber and bandwidth connectivity, colocation and cloud infrastructure to the world’s leading businesses. Customers include wireless and wireline carriers, media and content companies and finance, healthcare and other large enterprises. 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. Zayo provides clients with flexible, customized solutions and self-service through Tranzact, an innovative online platform for managing and purchasing bandwidth and services. For more information, visit

Forward Looking Statements

This press release contains a number of forward-looking statements. Words, and variations of words such as “believe,” “expect,” “plan,” “continue,” “will,” “should,” and similar expressions are intended to identify our forward-looking statements. No assurance can be given that future results expressed or implied by the forward-looking statements will be achieved and actual results may differ materially from those contemplated by the forward-looking statements. These forward-looking statements involve risks and uncertainties, many of which are beyond our control. For additional information on these and other factors that could affect our forward-looking statements, see our risk factors, as they may be amended from time to time, set forth in our filings with the SEC, including our 10-K dated August 22, 2017. We disclaim and do not undertake any obligation to update or revise any forward-looking statement in this press release, except as required by applicable law or regulation.

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