Some more European fiber infrastructure is changing hands today. euNetworks has announced the acquisition of Fiberlac, expanding its footprint to both lower latitudes and higher elevations.
Fiberlac has operated a deep intercity dark fiber network in Switzerland for more than a decade and a half. With 360km route miles, the network connects 11 Swiss cities, including the key nodes of Geneva, Zurich, Lausanne, Bern, and Basel, with direct connectivity into 5 of the country's key data centers.
As a primarily dark fiber and managed services asset, it also comes without a lot of extra baggage, e.g. revenues from legacy technologies while bringing in personnel with the local knowledge a pan-European network operator needs to enter a new country.
euNetworks will no doubt move swiftly to extend its lit services across the new infrastructure. I am curious whether they will also move toward expanding their metro coverage in Fiberlac's markets to match the kind of reach they have, for example, in their markets in Germany, the Netherlands, and the UK.
The deal extends euNetworks network southward into the Alps, complementing its German footprint and possibly providing a stepping stone toward further acquisitions. While it has taken a while to heat up, fiber consolidation in Europe does seem to be gaining momentum.
Financial terms were not disclosed, nor were details on synergies etc. However, I'm sure we'll get at least a bit better idea when euNetworks releases its Q3 earnings in a few weeks.
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