Fiber-optic network services provider Zayo Group says it has agreed to acquire Seattle-based 360networks Holdings (USA) Inc. The acquisition will enable Zayo to pair its metropolitan fiber networks in 60 US metropolitan markets with 360networks' intercity fiber network that crosses the central and western United States.
Terms of the deal were not disclosed.
360networks operates over 18,500 route miles of intercity and metro fiber-optic infrastructure across 22 states and British Columbia. The networks interconnect more than 70 markets across the central and western United States, including 24 Zayo fiber markets and a number of new markets such as Albuquerque, Bismarck, Des Moines, San Diego, San Francisco, and Tucson.
Zayo’s impending acquisition also operates more than 800 route miles of metropolitan fiber networks across 25 markets, including Seattle, Denver, Colorado Springs, Omaha, Sacramento, and Salt Lake City. Upon completion of the acquisition, which Zayo expects to occur by early next year, Zayo will have a combined fiber network of more than 42,000 route miles and nearly 2 million fiber miles.
"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."
In addition to its fiber assets, 360networks also offers wholesale voice-over-IP (VoIP) services. Zayo spun-off its voice operations into a separate entity, Onvoy Voice Services, to focus on its bandwidth infrastructure operations. Zayo therefore plans to spin-off the 360networks VoIP operations to Onvoy.
"The employees of 360networks are doing a fantastic job in growing their business," Caruso added. "They will be an integral part of the combined company."
Zayo has used acquisition as a central part of its business model (see “Zayo pairs opportunity with planning”). 360networks will be the largest of the 17 acquisitions made by Zayo since its inception in 2007.