Zayo gave a presentation at the Jefferies investor conference yesterday, in which it discussed yet another acquisition made recently - yes, since Columbia Fiber Solutions just a couple weeks ago. Who was it? Well, they didn't put a name on it, they only described it as a conduit asset, mostly in the greater Denver area but also some landing station assets in New Jersey. While the conduits house other networks (Level 3 and Qwest were mentioned) I presume the idea is for Zayo to put its own fiber in as well. But I have no idea who they are buying this asset from, does anyone know? Dan Caruso, are you going to give us more information on this one soon?
Zayo also gave an update on its financials. Based on annualized Q2 numbers, their run rate is in the neighborhood of $220M revenue and $75M EBITDA. That's not a surprise, it seems about right - but since Zayo isn't a public company we have to make use of the datapoints we do get. If one were to put an 8x multiple on that EBITDA, the market might value Zayo at $600M - not bad at all for just over $300M invested just 18 months ago, and it is probably lower than reality.
Finally, they confirmed what I discussed in a post just the day before - that Zayo is engaged in a large fiber-to-the-tower effort right now. One has to assume that their visit to this conference implies that they are looking for new money to do new deals, but that isn't a surprise. And they could very well get it, there's nothing like a good track record in difficult times.