LONDON, UK / ACCESSWIRE / January 22, 2018 / Active-Investors.com has just released a free research report on Zayo Group Holdings, Inc. (NYSE: ZAYO). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/'symbol=ZAYO as the Company's latest news hit the wire. On January 19, 2018, the Company disclosed that it has acquired privately-owned and Vancouver, Canada-based Optic Zoo Networks. The deal valued CAD $31 million will allow Zayo to expand its dark fiber optic network and footprint in Vancouver and Western Canada. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Zayo Group Holdings most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
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Commenting on the acquisition of Optic Zoo Networks, Jack Waters, CTO and President of Fiber Solutions - Zayo, said:
"The addition of Optic Zoo, with its pure play assets and innovative team, will complement our Canadian footprint and accelerate our traction in a rapidly growing media and technology hub. Optic Zoo has built a strong and growing business, attracted an impressive customer base and delivered revenue growth rates of more than 20 percent."
Highlights of the acquisition
Optic Zoo Networks owns, manages, and operates extensive high-capacity fiber network across Vancouver and significant customer penetration especially with customers in the digital media sector. With the acquisition of Optic Zoo Networks, Zayo will expand its presence in Vancouver and Western Canada. The deal allows Zayo to add 103 route miles and over 100 on-net buildings to its existing network in Vancouver. The acquisition will allow Zayo to expand and strengthen its customer base and reach across both US and Canadian customers. This will allow it to cross sell its services to a wider section of customers. Optic Zoo's high-count fiber can easily increase its capacity to add new customers without compromising on services to existing customers.
The acquisition gains significance given that Vancouver is the third largest city in Canada and a global business hub. The city is a growing center for companies in the digital media and film, professional services, biotechnology, and software development. These Companies require large bandwidths and are the target customers for the Company's services.
Additionally, all Optic Zoo Networks' revenue streams are aligned with Zayo's infrastructure-focused business segments, which are identified under fiber solutions. Optic Zoo's annualized earnings before interest, tax, depreciation, and amortization (EBITDA) for the quarter ending on March 31, 2018, is expected to be approximately CAD $1.9 million. Zayo expects that the acquisition will result in annual cost-based synergies of approximately CAD $0.5 million by end of FY18 once the Company manages to complete the simple integration process.
Zayo completed the transaction on January 18, 2018. Bank Street Group were the exclusive financial advisors to Optic Zoo for this transaction.
Aggressive Growth strategy
The acquisition of Optic Zoo Networks is in-line with Zayo's growth strategy of expanding its business and global footprint via strategic acquisitions. In November 2017, Spread Networks, a privately-owned telecommunications provider that owns and operates a high - fibre optic network that connects New York and Chicago. The deal provided Zayo with the lowest latency and most direct fiber route between the two cities.
The Company has also been expanding its product offerings and recently in early January 2018, the Company had launched Zayo's SD-WAN (software defined wide area network) solution. SD-WAN is an integrated extension of Zayo's fiber-based IP/MPLS backbone offerings and an enterprise solution that makes it easier to manage, improves performance and enhances reliability and failover options.
About Zayo Group Holdings, Inc.
Boulder, Colorado-based Zayo was founded in 2007 and provides communications infrastructure services, including fiber and bandwidth connectivity, colocation, and cloud infrastructure to the world's leading businesses. The Company's customers include wireless and wireline carriers, media and content Companies and finance, healthcare and other large enterprises. The Company has a 126,000-mile network in North America and Europe and includes extensive metro connectivity to thousands of buildings and data centers. The Company also offers colocation and cloud infrastructure in its carrier-neutral data centers. The Company's innovative online platform, Transact, provides its clients with a flexible, customized solutions, and self-service for managing and purchasing bandwidth and services.
Stock Performance Snapshot
January 19, 2018 - At Friday's closing bell, Zayo's stock was marginally up 0.98%, ending the trading session at $35.98.
Volume traded for the day: 1.51 million shares.
Stock performance in the last three-month - up 1.44%; previous six-month period - up 12.16%; and past twelve-month period - up 12.97%
After last Friday's close, Zayo's market cap was at $8.93 billion.
Price to Earnings (P/E) ratio was at 95.69.
The stock is part of the Technology sector, categorized under the Networking & Communication Devices industry. This sector was up 0.3% at the end of the session.
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