Upstart fiber network operator Zayo Group (news, filings) has closed its acquisition of ftgx, bringing the latter's colocation and interconnection services underneath Zayo's growing umbrella. Soon after the acquisition was announced in May, a rival bid by RCN Business (NASDAQ:RCNI, news, filings) threatened to knock Zayo's acquisition train off the tracks. However, after a couple weeks of negotiations RCN dropped out of the bidding and now it's all done. So what will Zayo do with the Fibernet assets?
Create a new business unit of course! The company is already divided into Zayo Bandwidth, Zayo Enterprise Networks, and Onvoy Voice Services, however none of those really match up with Fibernet's main business. So they will make a fourth, still unnamed unit, this one focused on colocation and interconnection - which frankly seems like a natural addition to the family. But I think the biggest contribution the Fibernet acquisition makes to Zayo is simply a real economic presence in the largest data centers in the NY/NJ metro area. That will open many doors they might not have had the chance at when their main markets were Philadelphia, Indianapolis, Memphis, and Columbia WA - great places of course, but not of the same scale.
Over on BearonBusiness, Zayo CEO Dan Caruso has broken his silence about the deal in the first post in a series. Of course, he *had* to be silent about it while actually inside it. But now that the deal has closed he is hinting at revealing some of the behind-the-scenes details this week, including some related to the RCN bid that Dave Rusin and I speculated some on back then. You can tell he's been itching to put in his two cents, but of course there's still a limit to what he can reveal. No doubt he will shoot countless holes in my own, uninformed opinions - stay tuned...
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