Zayo acquires American Fiber Systems
US bandwidth infrastructure provider Zayo has made its 15th acquisition in three years following the purchase of American Fiber Systems (AFS) for an undisclosed sum.
AFS operates in six US metropolitan markets, and will add over 800 miles of fibre network to Zayo’s existing offering. It derives 75% of its revenue from Atlanta, Boise and Las Vegas and also has business in Atlanta, Cleveland and Minneapolis.
“We have been investing heavily where there are new customer opportunities to pursue,” said John Scarano, co-founder and chief operating officer at Zayo. “AFS has been cash starved in relation to Zayo. Customer opportunities were not being serviced by AFS prior to acquisition, but that provides us with opportunities to pursue.”
Zayo completed the acquisition of dark fibre provider AGL Networks in July, giving it 20,000 miles of regional fibre, metro fibre and fibre-to-the-tower.
“AFS is Zayo’s latest purchase, but is not likely to be the last,” said Judy Reed Smith, CEO and president of consulting firm Atlantic ACM. “The US telecoms industry seems to be going through a wave of consolidation, involving many different types of company. With demand for fibre backhaul growing along with wireless data usage, video and social networking, it seems like a good time to be buying up fibre players, and several are on the market.”