Last week Telecom Ramblings broke the news here that metro and regional fiber specialist Zayo Group (news, filings) had apparently managed to raise yet more money, and in fact they did with a series B equity round. We don’t get too many scoops around here, so far anyway! Of course, Zayo didn’t actually tell us how much they raised yet, more information is to come later. But let’s make a guesstimate of $50M based on CEO Dan Caruso’s comment:
the amount of funding was material by Zayo standards but a mere snow flake in the Rocky Mountains by Level 3 standards
So what can they do with about $50M? And why do they think they need more mid-level Corporate Development to put the money to work? With Zayo’s history, one has to assume they might buy something. On the other hand it seems like they wouldn’t another hand for M&A. Could they be looking to enter a new line of business? Perhaps the answer is in the fiber-to-the-tower efforts they have been working through. Sufficient capital means they can take on capex-heavy contracts at a time when the competition doesn’t want to, which will bring long term growth and deeper entrenchment in their markets.
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