Two pending infrastructure deals close, and dueling IX expansions in Mumbai.
Two days after adding $150M to its coffers via a new term loan tranche, Zayo has closed its purchase of Spread Networks. The $127M deal augments Zayo's network infrastructure with a unique low-latency route between New York and Chicago. Zayo is moving quickly to take wider advantage of that route, and has launched a new business unit within the company called "Spread Networks by Zayo" built around the acquired unit and included within the company's Fiber Solutions segment. The new unit will focus on low latency connections nationwide, noting that the combined infrastructure can now offer low latency links between other markets as well, such as New York and Seattle. After synergies, Zayo expects to generate $10.5M in annualized EBITDA from the acquisition of Spread Networks.
Internap has also polished off a deal, closing the purchase of SingleHop that was announced just a month ago. For $132M in cash, Internap has boosted its managed hosting and services business with an infusion of new employees. The integration of SingleHop is underway, with the company's automation, AI, and single pane of glass solutions being applied across a wider international platform.
DE-CIX says its India presence will be getting a bit bigger to start the spring. The Mumbai-IX exchange, which DE-CIX is a big part of, is adding a third PoP in Mumbai. They are moving into STT's carrier hotel in the city, which used to be known as TATA LVSB, and establishing a core node for the exchange there. The new node will be ready in March.
And not to be outdone, AMS-IX is also expanding its IX footprint in Mumbai. They are building a new PoP at GPX's data center, giving it three locations within the city. The new node will be operational in Q2, with five GPX customers already committed to hook up when it does.