Zayo Takes Out Neutral Path

January 29th, 2018 by · Leave a Comment

Zayo kicked off Metro Connect this year with a bang, buying its second fiber network asset of the year.  The Boulder-based network builder and operator has announced an agreement to acquire Neutral Path Communications and Near North partners.

The deal brings to Zayo another 452 high fiber-count intercity route miles as well as some additional leased assets in the Midwest.  Neutral Path had built a unique route between Minneapolis and Omaha and extended from that route to Chicago, Kansas City, and Denver, which fits nicely with Zayo's other longhaul assets between Chicago and Denver.

The purchase cost Zayo $31.5M, a price for which they will get $2.1M in annualized EBITDA and expect to achieve another $0.6M in annualized cost synergies.  That's a multiple of 15x before synergies, and 11.7x after.  Last week Zayo bought Optic Zoo out in Vancouver.

Categories: Fiber Networks · Mergers and Acquisitions

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