Backbone operator Zayo Group is reported to have hired banks to prepare an initial public offering of the company’s stock.
Barclays and Morgan Stanley have been mandated for the float, which could value the company at US$7bn, people familiar with the…
Backbone operator Zayo Group is reported to have hired banks to prepare an initial public offering of the company’s stock.
Barclays and Morgan Stanley have been mandated for the float, which could value the company at US$7bn, people familiar with the matter told Reuters.
Zayo declined to comment on the report.
Last month the company spent US$80m on the acquisition of French fibre operator Neo Telecoms and revealed a debt pile just shy of US$3bn in its latest quarterly results today. It reported revenue of US$278m for the quarter and US$165m EBITDA.
Zayo is backed by eight investment firms, one of which is Morgan Stanley. The others are Battery Ventures, Centennial Ventures, Charlesbank Capital Partners, Columbia Capital, GTCR, M/C Partners and Oak Investment Partners.
In 2012 Zayo made a significant acquisition, purchasing New York-based Abovenet for US$2.2bn, and it secured US$3.3bn in financing; Barclays and Morgan Stanley advised on the debt side.
Colorado-based Zayo was founded in 2007 and offers wholesale services to consumer-facing telcos. It operates a 75,000 mile-plus fibre network which serves thousands of towers and hundreds of data centres and carrier PoPs.
Zayo says its network connects 14,196 buildings in 297 markets and that it has particularly strong connectivity in the United States and London.
