Acquisition of 360networks to cost $345 million
Zayo is paying $345 million for the acquisition of 360networks, according to an SEC filing.
The acquisition of 360networks follows hot on the heels of a ‘long-term agreement with an option to extend’ which was made between the two companies in March this year.
That agreement stated that Zayo, a provider of fibre-based bandwidth infrastructure and network-neutral co-location services, would provide 360networks with metro dark-fibre connectivity. At the time, Matt Erickson, president of Zayo Fiber Solutions, stated that: "Zayo is pleased to formalise a strategic relationship with 360networks to support their growing bandwidth requirements.”
However, earlier this month Zayo announced that it would be purchasing 360networks, in an acquisition expected to be finalised early in 2012. 360networks has a network covering over 18,000 route miles over 22 states in the US and in June it announced the launch of 640 mile link between Dallas and El Paso, which is capable of supporting 100Gbps.
The 360networks acquisition will give Zayo a collective fibre network of over 42,000 route miles and nearly two million fibre miles.
Zayo will focus on its bandwidth infrastructure services, and therefore plans to sell on 360networks’ VoIP operations to Onvoy Voice Services.
Zayo has made a substantial number of acquisitions in recent years. It acquired AGL Networks in July 2010, which brought 20,000 miles of regional fibre, metro fibre and fibre-to-the-tower. And its purchase of American Fiber Systems in September 2010, with its six US metros, was the 15th purchase Zayo had made in three years.
However, the acquisition of 360networks is substantially bigger than any of its others, with the $345 million deal estimated to be three times greater than any of its previous acquisitions.