BOULDER, CO and VANCOUVER – Allstream parent Zayo Group Holdings has bought Vancouver-based Optic Zoo Networks Inc. for CAD $31 million.
Optic Zoo owns and operates high-capacity fibre in Vancouver. Zayo said Friday that the acquisition strengthens its position in Vancouver and Western Canada, adding 103 route miles and more than 100 on-net buildings to its current Vancouver footprint, plus provides it with the ability to cross sell to U.S. and Canadian customers.
“The addition of Optic Zoo, with its pure play assets and innovative team, will complement our Canadian footprint and accelerate our traction in a rapidly growing media and technology hub,” said Zayo’s CTO and president of Fiber Solutions Jack Waters, in the news release. “Optic Zoo has built a strong and growing business, attracted an impressive customer base and delivered revenue growth rates of more than 20 percent.”
The transaction, which closed Friday, was funded with cash on hand and debt.
Zayo added that all of Optic Zoo’s revenue, which includes approximately 50% fibre solutions, aligns with Zayo’s infrastructure-focused business segments. Optic Zoo is expected to generate CAD $1.9M in annualized EBITDA for the quarter ended March 31, 2018. Zayo expects to achieve approximately CAD $0.5M in annualized cost synergies by year-end 2018 after a relatively straightforward integration process.
