US fibre network provider Zayo has agreed to acquire Kansas-based IdeaTek Systems for an undisclosed amount in a cash-on-hand deal.
Further to the acquisition, which is expected to close in early 2015, Colorado-based Zayo will add 1,800 route miles to…
US fibre network provider Zayo has agreed to acquire Kansas-based IdeaTek Systems for an undisclosed amount in a cash-on-hand deal.
Further to the acquisition, which is expected to close in early 2015, Colorado-based Zayo will add 1,800 route miles to its network in Kansas, the company said in a statement.
Zayo claims that its existing network spans more than 81,000 route miles across the US and Europe and connects to more than 15,000 buildings.
“IdeaTek’s customer base and installation pipeline complements Zayo’s existing infrastructure focus and supports our domestic long haul network build-out,” commented Zayo CEO Dan Caruso.
IdeaTek will retain its residential and small-commercial units, and will continue to operate under the IdeaTek Telecom brand.
Telecom Asset Management advised the target on the sale.
Commenting on the deal, Wells Fargo senior analyst Jennifer Fritzsche said: “We do note that IdeaTek has strong fiber-to-the-tower and small cell initiatives for mobile carriers. We continue to believe the small cell opportunity for fiber companies is a real and tangible growth opportunity – very much in the early innings.”
Zayo, which was listed on the New York stock exchange in mid-October in a US$460m IPO, has acquired around 30 businesses for a total investment value of US$3.7bn since it was founded in 2007.
The company was not immediately available for further comment.
