DataBank to acquire zColo data centre assets from Zayo

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Colocation provider DataBank has signed definitive agreements to acquire zColo, including certain U.S. and European data centre assets, from Zayo Group Holdings.

The zColo acquisition brings to DataBank an additional 44 data centres including 13 key interconnect locations across 23 markets in the US and Europe. The transaction is anticipated to close by year-end 2020.

The company said the transaction creates one of the largest privately-held data centre operators in the US.

DataBank’s service framework and operations will expand to include 64 data centres in 29 markets, Over 3,000 customers including many Fortune 100 and leading cloud and content providers, and 1.1 million raised square feet of data centre space.

It will also include 141 MW of installed UPS capacity, over 30,000 network cross-connects, 18 major network interconnection points, and 12 cloud nodes.

“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.”

The expanded data centre footprint provides DataBank’s customers with new geographic options for colocating their mission-critical content, data and workloads closer to end-user populations in markets like Los Angeles, Denver, Chicago, Miami, Boston and New York City.

“This agreement allows both parties to focus on their core strengths,” said Dan Caruso, Zayo Group’s CEO. 

“We’ll continue building the most fibre-rich digital infrastructure in the world while DataBank focuses on hosting the innovations and digital workloads that our fibre 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 institutional investors to support the acquisition, Colony Capital is investing $145 million from its balance sheet to maintain its 20% stake in DataBank.