Zayo agreed to acquire the operating units of Latisys Holdings, a colocation and infrastructure as a service (“Iaas”) provider for US$675 million.
Latisys provides colocation and IaaS services through eight datac enters across five markets – Northern Virginia, Chicago, Denver, Orange County and London. Its data centers currently total over 185,000 square feet of billable space and 33 megawatts of critical power with the ability to expand. Latisys focuses on marketing to and serving approximately 1,100 predominantly medium to large enterprise customers with large storage, compute and data connectivity needs. The combination of high quality assets, innovation and accelerating market demand has driven a strong track record of robust revenue growth and margin expansion since its founding in 2007. The company generated Adjusted EBITDA of approximately $11.0 million for the three months ended September 2014 and approximately $4.2 million for the month of November 2014.
Zayo said the deal will expand its data center portfolio to 45 facilities within the US, France and the United Kingdom. Latisys provides zColo a data center presence in four new markets. Zayo owns and operates extensive metropolitan fiber networks across all of the Latisys markets, physically connecting each of its data center facilities. This will allow Zayo to sell fiber and bandwidth services to Latisys’ core set of enterprise customers, and to market new colocation and IaaS services to Zayo’s base of carrier and content customers.
“Both Latisys and Zayo’s zColo business have a great track record of creating value for investors and customers,” said Dan Caruso, chairman and CEO of Zayo Group. “The addition of Latisys into Zayo strengthens Zayo’s portfolio of infrastructure services.”
