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
-
- Microsoft Security Operations Analyst | Bracknell | SC Clearable | SC-200
- Reading
- N/A
-
Senior SOC Analyst Level 2 / 3. Microsoft Security stack | SC Clearable Location: Hybrid remote | Berkshire SC-200 Senior SOC Analyst Level 2 / 3 to join a specialist Managed Security Services business. You will be responsible for advanced threat hunting / triage, incident response etc with a strong focus on the Microsoft Security Stack. Key Responsibilities: Lead and resolve complex security incidents / escalations Conduct advanced threat hunting using the Microsoft Security Stack. Build, optimise and maintain workbooks, rules, analytics etc. Correlate data across Microsoft 365 Defender, Azure Defender and Sentinel. Perform root cause analysis and post-incident reporting. Aid in mentoring and upskilling Level 1 and 2 SOC analysts. Required Skills & Experience: The ability to achieve UK Security Clearance (SC) - existing clearance ideal. (Sorry no visa applications) Must have current experience working with a SOC environment Key experience must also include, but not be limited to Development and tuning of custom analytic rules. Workbook creation and dashboarding. Automation using Playbooks and SOAR integration. Kusto Query Language (KQL).
-
- Service Architect- DACH regions
- Germany
- Upto €110,000 plus bonus and benefits
-
Lead Service Architect with the authority and experience to take control of complex, multi-million-euro outsourcing bids. This role is about leading the Service/ solutioning effort, bringing structure to chaos, and driving the entire bid team to deliver winning proposals. The company area a global managed services business working with enterprise and public sector clients, across Cloud, End-User Computing, Digital Workplace, Service Desk, and Network Infrastructure. What You’ll Do: Lead Service/ solution design from qualification to contract. Control bid teams — architects, pricing, delivery, and SMEs. Break down RFPs/RFIs into actionable, costed, client-ready solutions. Present internally and to clients at decision-maker level. Run solution workshops, own the architecture, and shape the financial model. You’ll Need: Experience working as a Service architect, Service Manager or Customer Success Manager R Gravitas to lead and drive teams through high-stakes bids. Deep knowledge of managed services delivery and commercial models. Strong technical grasp: Cloud, Security, EUC, Unified Comms, Service Desk, and more. Experience leading deals across onshore, offshore, and hybrid delivery models.
-
- Deal Architect- DACH region
- Germany
- Upto €110,000 plus bonus and benefits
-
Lead Deal Architect with the authority and experience to take control of complex, multi-million-euro outsourcing bids. This role is about leading the solutioning/ Service effort, bringing structure to chaos, and driving the entire bid team to deliver winning proposals. The company is a global managed services business providing solutions to enterprise and public sector clients, across Cloud, End-User Computing, Digital Workplace, Service Desk, and Network Infrastructure. What You’ll Do: Lead the deal from qualification to contract. Control bid teams — architects, pricing, delivery, and SMEs. Break down RFPs/RFIs into actionable, costed, client-ready solutions. Present internally and to clients at decision-maker level. Run solution workshops, own the architecture, and shape the financial model. Be responsible for the service Wrap and ensuring the Service meets clients requirements You’ll Need: A back ground with IT Services Experience in a similar type of role, for example: Deal, Service, or Solution Architect in ICT outsourcing. Gravitas to lead and drive teams through high-stakes bids. Deep knowledge of managed services delivery and commercial models. Strong technical knowledge: Cloud, Security, EUC, Unified Comms, Service Desk, and more. Experience leading deals across onshore, offshore, and hybrid delivery models.
-
- Pre Sales Lead- IT Services
- Germany
- Upto €100,000 plus benefits
-
As the Pre-Sales Lead (Sales Engineer/ Solution Architect) you will drive large-scale ICT managed services and outsourcing deals (from €0.5M to €20M+). You'll work directly with Business Development and clients to design high-impact solutions across Cloud (Azure, IaaS, SaaS, PaaS), EUC, Unified Comms, Security (SIEM, PAM), Networks, and Smart Workplaces. What You’ll Do: Lead the end-to-end pre-sales cycle — from RFI/RFP to contract. Design innovative, client-specific solutions with technical & commercial impact. Present at CxO level and steer proposal strategies & financial models. Collaborate closely with Portfolio, Service Desk, Field, and Digital Workplace teams. Support deal shaping with strong knowledge of ITIL, SIAM, Automation, and cost analysis. What You’ll Bring: Have strong experience in pre-sales or solution architecture. Experience with €M+ managed service deals. Deep technical expertise in modern ICT stack and enterprise IT services. Strong German (C1) and English communication skills. Certifications: ITIL v3/v4 required; SIAM, ISO20000 desirable.