Zayo Announces Plans to Separate into Two Public Companies, one focused on Communications Infrastructure and one on Enterprise Services
Zayo Group Holdings, Inc has announced this week it plans to separate into two publicly traded companies: one to focus on providing core communications infrastructure and another to leverage infrastructure to provide solutions for a broad set of enterprise customers. Zayo Infrastructure, “InfraCo,” will be a unique, fiber-focused infrastructure provider with deep, dense networks and broad geographic reach throughout North America and Western Europe. “EnterpriseCo” will have a strong product portfolio and customer base centered on higher bandwidth connectivity to enterprise locations, including to public cloud and SaaS providers, that will be sold both directly to enterprise customers and wholesale through a carrier focused channel.
“This announcement is the logical next step in the evolution of Zayo,” said Dan Caruso, chairman and CEO of Zayo. “While Zayo’s business today is organized as five autonomous segments, the complexities of these businesses have made it more difficult to achieve our growth objectives. By completely separating the infrastructure and enterprise businesses, we will enable more focused execution within each business, leading to enhanced growth and unlocking value.”
Zayo Infrastructure (“InfraCo”)
InfraCo will be comprised of the current Fiber Solutions and zColo business segments, along with the Wavelength and IP Transit businesses of Zayo’s current Transport segment. InfraCo will be the leading North American and European communications infrastructure asset, with an international fiber footprint and unparalleled metro and regional density. This business will own and operate Zayo’s Tier One IP backbone as well as the Media Networks platform that serves its strategic video customers. InfraCo benefits from strong secular demand and caters to a base of the largest and most sophisticated users of bandwidth infrastructure. As a business focused on infrastructure, InfraCo will have a clearer and more compelling path to REIT conversion given strong industry precedents. InfraCo will continue to be led by Dan Caruso, Zayo’s chairman and chief executive officer.
EnterpriseCo
EnterpriseCo will be comprised of the current Enterprise Networks and Allstream segments, along with the SONET and Ethernet businesses of Zayo’s current Transport segment. EnterpriseCo will have significant scale and breadth of product portfolio, while a long-term relationship with InfraCo will provide certainty on network access and cost.
EnterpriseCo will consist of two business units, an Enterprise Division and a Carrier Division. The Enterprise Division will focus on the direct-to-enterprise business and will include solutions centered on SD-WAN, IP VPN, and Unified Communications. This division will provide high-bandwidth solutions to a large, well-diversified customer base that includes over 50,000 enterprises.
The Carrier Division will focus on wholesale services to carriers which enable them serve their enterprise customers, including Carrier Ethernet tails, Wholesale Voice, and SONET. These two business units, which will each combine resources and staff from both Allstream and Zayo’s existing Enterprise segment, will be run autonomously to ensure full focus on their respective customer base and solutions.
EnterpriseCo will be led by newly named COO Mike Strople, current president of Zayo’s Allstream Segment, and Tyler Coates, SVP of Zayo’s existing Enterprise Segment.
Benefit of Separation
“This transaction positions InfraCo as the largest pure-play fiber-focused communications infrastructure provider and creates an opportunity for EnterpriseCo to fully focus on our extensive enterprise customer base, solution set and business model while maintaining a strategic relationship with InfraCo,” said Caruso. “As we operate independent businesses today, we anticipate the transition to be fairly straightforward.”
Execution Highlights
The transaction is expected to be consummated via a pro rata taxable spin of EnterpriseCo from Zayo. Zayo’s existing NOLs are expected to be available to reduce any cash taxes owed by Zayo in conjunction with the spin-off. This structure preserves the ability for InfraCo to convert to a real estate investment trust (REIT). Consummation of the spin is subject to regulatory and Board approval. Immediately following the separation transaction, which is expected to be completed in late 2019, Zayo shareholders will own shares of both companies.
Goldman Sachs and J.P. Morgan are serving as financial advisors to Zayo.
source zayo
Industry: Telecommunications News
Latest Jobs
-
- Data Protection Officer (DPO)/ Risk Manager
- London
- 65000 plus benefits
-
Data Protection Officer with a strong focus on risk management is needed for this expanding Paytech business. You will work closely with the CISO to help understand how the data is being processed within the business and identify the business risk associated with this. this role will be both internally and externally focused As the business processes payments across the globe, they require someone with knowledge of the different data regulations, GPPR, CCPA. This role is focused on helping to identify potential business risks associated with the data usage and ensuring that issues are flagged to the relevant teams within the business.
-
- Security Monitoring and Vulnerability Analyst, End User. PCI Level 1 Service Provider.
- Unknown
- 50000
-
CH7843 Security Monitoring and Vulnerability Analyst, End User. Level 1 Service Provider. £50,000 London Security Monitoring and Vulnerability Analyst needed to join an Level 1 Service Provider. The Security Analyst will be responsible monitoring, configuring, fine tuning and generally improving the security tool capability. Specific experience with Tripwire Log Center and Tripwire Enterprise is highly desirable. Other security tools experience should include the managing and monitoring of firewalls, Anti Phishing, AV, vulnerability management, IAM etc. Current experience with Vulnerability management and penetration testing is highly desirable. Specifically the ability to effectively manage 3rd party pen tests. Hands on penetration testing is a very nice to have. You will be working within a specialist security team reporting to the CISO. Experience working within an end user environment within financial services is highly desirable. Flexible location. This is an exclusive role to DCL Search & Selection. https://calendly.com/chris-holt/arranged-call-with-chris-holt-soc-role-clone
-
- Internal Security Auditor, Level 1 Service Provider (ISO27001)
- London
- Upto 65,000 plus benefits
-
Internal Security Auditor ISO 27001, PCI, needed to join a Cyber team within this expanding Fintech business. The Internal Security Auditor will have end to end responsibility for planning, delivering, remediating any findings etc. Experience working within financial services is highly desirable. This Is a great time to join a newly formed and growing Cyber team within a rapidly expanding fintech, that is taking a major share of its market. We are looking for someone with experience, (but not to be limited to) a mix of Information Security standards, frameworks, audit principles, controls / policies and the management and use of the technical tooling etc. ISO 22301, ISO 27001, NIST Cybersecurity Framework etc An ideal candidate will be working within an end user environment with a cyber consultancy background. Experience taking a company through accreditation is highly desirable Experience managing internal stakeholders, technical teams and external third parties essential Flexible working, but with the ability to get into London. This is an exclusive role to DCL Search & Selection.
-
- DevOps Engineer with IdAM
- London
- Upto £80,000 plus benefits
-
We are ooking for an DevOps engineer, idealy with IdAM (identity access Management) experience, this is a senior role for someone that can be the lead hands on person on a project. Your role will be to work on the deployment project implementing the solution into the exsiting application so will be used to connect an applications into mulipe 3rd party appliactions. We Would look at someone who has done DevOps with Security and can cross train into IdaM, but preference would be given to someone with the IdAM experience this is a great opportunity to join a consultancy that work on some truely amazing and differnet solutions