Telecom Ramblings

PR Archives:  LatestBy Company By Date


Press Release -- September 29th, 2020
Source: databank, Zayo Group
Tags:

DataBank to Acquire zColo Data Center Assets

Transaction Creates One of the Largest Privately-Held Data Center Operators in the U.S

Establishes DataBank as a National Edge Data Center Provider Serving 29 Key Markets Via 64 Data Centers and Over 1 Million Square Feet of Colocation Space

Dallas, TX – September 29, 2020 – DataBank, a leading provider of enterprise-class colocation, connectivity, and managed services, today announced that it has signed definitive agreements to acquire zColo, including certain U.S. and European data center assets, from Zayo Group Holdings. The zColo acquisition brings to DataBank an additional 44 data centers including 13 key interconnect locations across 23 markets in the U.S. and Europe. The transaction creates one of the largest privately-held data center operators in the U.S. and positions DataBank as a leading provider of edge colocation and connectivity solutions to hyperscale, technology, and content customers across the U.S.

In addition to growing DataBank’s geographic footprint to a national scale in strategically important data center markets, zColo will contribute an exceptional base of diversified, blue-chip customers that complement DataBank’s existing relationships. These organizations will benefit from DataBank’s proven customer-focused service framework and operations which will expand to include the following:

  • 64 data centers in 29 markets (up from 20 data centers and 9 markets)
  • Over 3,000 customers including many Fortune 100 and leading cloud and content providers
  • Pro forma annual revenue of over $450M
  • 1.1M raised square feet of data center space
  • 141 MW of installed UPS capacity
  • Over 30,000 network cross connects
  • 18 major network interconnection points
  • 12 cloud nodes

The transaction also significantly accelerates DataBank’s edge and hybrid cloud strategies. The expanded data center footprint provides DataBank’s customers with new geographic options for colocating their mission-critical content, data, and workloads closer to end-user populations in key markets like Los Angeles, Denver, Chicago, Miami, Boston, and New York City. With double the number of private cloud nodes and public-cloud on-ramps, DataBank customers will have more flexibility to design hybrid IT solutions that adapt as their infrastructure needs evolve.

“Simply put, this highly complementary acquisition will allow us to serve customers better. The strategic rationale is fully aligned with our core ‘Data Center Evolved’ strategy built around providing customers broad geographic reach as they move their content and applications closer to the edge,” said Raul K. Martynek, CEO of DataBank. “We look forward to integrating zColo into our portfolio while elevating our existing level of service to meet the increasingly diverse workloads of our enterprise customers.”

Having assembled one of the densest metro and long-haul fiber networks in the U.S., Zayo’s data center assets also bring to DataBank a set of valuable network hubs and carrier hotel facilities, making it one of the largest providers of network-neutral interconnections and adding diversity and performance to the DataBank footprint.

Zayo Group will become a significant customer and continue to be an anchor tenant within the zColo facilities. DataBank customers will benefit from access to Zayo’s global fiber network, enabling companies to get their data anywhere in the world. With a long term agreement in place, the companies expect to collaborate closely in bringing colocation solutions to Zayo’s fiber customers and private fiber network solutions to DataBank’s colocation and cloud customers.

“This agreement allows both parties to focus on their core strengths,” said Dan Caruso, Zayo Group’s CEO. “We’ll continue building the most fiber-rich digital infrastructure in the world while DataBank focuses on hosting the innovations and digital workloads that our fiber and network infrastructure were designed to fuel.”

The transaction is being funded by an investor group led by Colony Capital, Inc. (NYSE: CLNY), DataBank’s controlling shareholder, which includes Nuveen Real Estate and others. In addition to leading a consortium of world-class institutional investors to support the acquisition, Colony Capital is investing $145 million from its balance sheet to maintain its 20% stake in DataBank. Debt financing associated with the transaction has been underwritten by TD Securities, Truist Securities and Société Générale, acting as Joint Lead Arrangers and Joint Bookrunners for the new Credit Facility.

DH Capital served as financial advisor to DataBank in connection with the transaction and Jones Day served as legal counsel. JP Morgan acted as financial advisor to zColo and Skadden Arps served as legal advisor.

The closing of the deal is subject to customary conditions and regulatory approvals. The transaction is anticipated to close by year-end 2020.

About DataBank
DataBank is a leading provider of enterprise-class data center, cloud, and interconnection services, offering customers 100% uptime availability of data, applications and infrastructure. DataBank’s managed data center services are anchored in world-class facilities. Our customized technology solutions are designed to help customers effectively manage risk, improve their technology performance and allow them to focus on their core business objectives. DataBank is headquartered in the historic former Federal Reserve Bank Building, in downtown Dallas, TX. For additional information on DataBank locations and services, please visit databank.com or call 1(800) 840-7533.

About Zayo
Zayo Group Holdings, Inc. provides mission-critical bandwidth to the world’s most impactful companies, fueling the innovations that are transforming our society. Zayo’s 133,000-mile network in North America and Europe includes extensive metro connectivity to thousands of buildings and data centers. Zayo’s communications infrastructure solutions include dark fiber, private data networks, wavelengths, Ethernet, dedicated internet access and data center colocation services. Zayo owns and operates a Tier 1 IP backbone and 44 carrier-neutral data centers. Through its CloudLink service, Zayo provides low-latency private connectivity that attaches enterprises to their public cloud environments. Zayo serves wireless and wireline carriers, media, tech, content, finance, healthcare and other large enterprises. For more information, visit zayo.com.

Cautionary Statement Regarding Forward-Looking Statements
This press release may contain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” or “potential” or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond our control, and may cause actual results to differ significantly from those expressed in any forward-looking statement. Factors that might cause such a difference include, without limitation, whether the sale of zColo to DataBank will be completed within the timeframe anticipated or at all, including the parties ability to obtain any necessary third-party approvals to consummate the transaction, and other risks and uncertainties. All forward-looking statements reflect the parties’ good faith beliefs, assumptions and expectations, but they are not guarantees of future performance. Investors are cautioned not to unduly rely on any forward-looking statements.

The forward-looking statements speak only as of the date of this press release. The parties are under no duty to update any of these forward-looking statements after the date of this press release, nor to conform prior statements to actual results or revised expectations, and do not intend to do so.

For DataBank media inquiries, please contact:
JSA
+1.866.695.3629 ext. 13
JSA_DataBank@jsa.net

Zayo Media:
Rebecca Whalen, Corporate Communications
rebecca.whalen@zayo.com
(773) 531-8914

PR Archives: Latest, By Company, By Date