Zayo Group Holdings today announced it has entered into a definitive agreement to acquire Viatel’s infrastructure and non-Irish enterprise businesses for approximately €95 million. Viatel is a wholly owned subsidiary of the Digiweb Group, a full service telecommunications and managed services operator, based in Dublin, Ireland.
The Viatel acquisition will provide Zayo with Pan-European intercity and metro fiber capability via an 8,400 kilometer fiber network across eight countries. The transaction will add 12 new metro networks, seven data centers and connectivity to 81 on-net buildings. Two wholly-owned subsea cable systems will provide connectivity on two of Europe’s busiest routes – London Amsterdam and London-Paris. The Viatel businesses to be acquired are highly aligned with Zayo’s existing product and customer set, including a higher proportion of dark fiber revenue.
“Viatel’s long-haul fiber network and colo assets combined with Zayo’s existing national UK, France and U.S. networks provides truly international, seamless connectivity for Zayo’s existing and new customers,” said Dan Caruso, chairman and CEO of Zayo. “Our Pan-European infrastructure capability addresses new growth opportunities, including connectivity to key subsea cable systems delivering traffic to and from high-growth regions such as Asia and Africa.”
“This transformative acquisition cements Zayo as a leading Pan-European Infrastructure provider and positions Zayo to capture significant organic and inorganic growth in Europe and beyond,” said Karl Maier, president of Zayo International.
“The combination of Zayo and Viatel will provide far greater network reach and growth potential for Viatel’s customers,” said Colm Piercy, CEO of Viatel.
The all-cash transaction is expected to close by the end of the calendar year, subject to customary closing conditions.