Zayo has gotten in some pre-Thanksgiving M&A activity, and in a somewhat surprising direction. The Boulder-based infrastructure provider has announced a definitive agreement to acquire Globalways GmbH.
Globalways is a German metro fiber provider. They have about 360 route kilometers of fiber in and around the city of Stuttgart in the southwestern corner of the country on the road between Frankfurt and Zurich. That fiber currently connects somewhere above 700 buildings.
In many ways this sounds like a quintessential Zayo purchase from the old days, swooping into a whole new metro market via an asset known mainly to locals. The fact that it’s on their eastern frontier where they haven’t done a fiber deal since Neo in 2014 and Viatel in 2015 is somewhat telling though. Zayo’s existing German footprint derives mainly from the Viatel deal, and Globalways’ footprint is complementary to that.
It could just be a one-off opportunistic move, or it could foretell a renewed appetite for consolidation in Europe. Globalways’ current owner is Relined GmbH, which continues to own fiber in Denmark, Germany, and the Netherlands. The deal is expected to close by the end of this year. Terms were not disclosed.
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