Zayo Group Holdings has entered into a definitive agreement to acquire Viatel’s infrastructure and non-Irish enterprise businesses. Viatel is a wholly owned subsidiary of the Digiweb Group, a full service telecommunications and managed services operator, based in Dublin, Ireland. The purchase price is approximately ˆ95 million.
The Viatel acquisition will provide Zayo with Pan-European intercity and metro fibre capability via an 8,400 kilometre fibre network across eight countries. The transaction will add 12 new metro networks, seven data centres and connectivity to 81 on-net buildings. Two wholly-owned subsea cable systems will provide connectivity on two of Europe’s busiest routes – London-Amsterdam and London-Paris. The Viatel businesses to be acquired are highly aligned with Zayo’s existing product and customer set, including a higher proportion of dark fibre revenue.
“Viatel’s long-haul fibre network and colo assets combined with Zayo’s existing national UK, France and U.S. networks provides truly international, seamless connectivity for Zayo’s existing and new customers,” said Dan Caruso, chairman and CEO of Zayo. “Our Pan-European infrastructure capability addresses new growth opportunities, including connectivity to key subsea cable systems delivering traffic to and from high-growth regions such as Asia and Africa.”
“This transformative acquisition cements Zayo as a leading Pan-European Infrastructure provider and positions Zayo to capture significant organic and inorganic growth in Europe and beyond,” said Karl Maier, president of Zayo International.
“The combination of Zayo and Viatel will provide far greater network reach and growth potential for Viatel’s customers,” said Colm Piercy, CEO of Viatel. “We will continue to offer leading Voice, Data and Hosting solutions in Ireland.”
The all-cash transaction is expected to be funded with cash on hand and to close by the end of the calendar year, subject to customary closing conditions.
