About Integra Telecom of Minnesota, Inc.
Zayo Group Holdings is paving the fast lane of the internet with miles of fiber optic cable. The company provides high-speed fiber-based bandwidth and services over its network that now exceeds 112,000 miles. Spanning more than 45 US states and Washington, D.C., the network penetrates more than 300 geographic markets. Zayo is expanding internationally with offerings in the UK, France, and Japan. Wireless and wired carriers, data centers, media and Internet companies, and government agencies use Zayo's network to transport data, voice, video, and Internet traffic, as well as to interconnect networks. Acquisitions are a key part of Zayo's route-building strategy.
Change in Company Type
Zayo Group Holdings sold shares to the public for the first time in 2014, raising about $300 million for the company. About 16 million shares were sold by the company and about 8 million were sold by stockholders.
Zayo's business segments are Dark Fiber Solutions; Network Connectivity; Colocation and Cloud Infrastructure; and Zayo Canada.
Network Connectivity, 40% of revenue, provides bandwidth infrastructure over Zayo's metro, regional, and long-haul fiber networks. Dark Fiber Solutions, a third of revenue, provides raw bandwidth infrastructure to customers that require more control of their internal networks. It makes direct fiber connections to cell towers, small cells, hub sites, and mobile switching centers.
Colocation and Cloud Infrastructure, 14% of revenue, provides infrastructure for data centers. It's services include colocation, interconnection, cloud, hosting and managed services such as security and remote hands offerings. Zayo Canada, the asset of the 2016 acquisition Allstream, contributes 12% of revenue.
Zayo does 78% of its business in the US with Canada and Europe supplying 12% and 10%, respectively. In the US, it owns fiber networks in more than 300 metro markets, including New York, Chicago, and San Francisco as well as smaller areas such as Allentown, Pennsylvania, Fargo, North Dakota, and Spokane, Washington. Internationally, the company owns fiber networks in London and Paris.
Sales and Marketing
Zayo sells mostly through its direct sales force. The company's largest single customer accounts for about 6% of revenue, and the 10 biggest customers account for about 26% of revenue.
Zayo's revenue growth in the past five years makes the hockey stick curve look lazy. Revenue zoomed 28% higher to $1.7 billion in 2016 (ended June), compared to 2015. Most of the gain came from Zayo's Canadian operations (the Allstream acquisition).
The company cut its loss in half to $76 million in 2016 from loss of $155 million in 2015 from the rise in revenue. The company's cash flow from operations moved to $714 million in 2016 from $605 million in 2015.
Zayo is firmly in growth mode, investing in building its high-speed fiber infrastructure in the US and increasing its footprint overseas. It has spent almost $704 million in the past two years to expand and maintain its high-speed fiber networks.
The company has continued to extend fiber between cities and within metro areas, big and small. It is working on a 1,000-mile dark fiber route between Omaha, Nebraska and Dallas, which will connect those cities with Bentonville, Arkansas, and Tulsa, Oklahoma. The company has also completed or acquired routes between San Francisco and Sacramento, San Diego and Yuma, Arizona, and Denver and Chicago.
Acquisitions are key part of Zayo's strategy. Overall, the company has bought 38 companies for a total cost of $5 billion.
Mergers and Acquisitions
Zayo stepped up its acquisition game in 2016. In December Zayo agreed to buy Electric Lightwave, formerly known as Integra Telecom, for $1.4 billion in cash. Electric Lightwave provides infrastructure and telecom services in the western US. It has 8,100 route miles of long haul fiber and 4,000 miles of metro fiber in Portland, Seattle, Sacramento, San Francisco, San Jose, Salt Lake City, Spokane, and Boise supplying on-net connectivity to more than 3,100 enterprise buildings and 100 data centers. The Electric Lightwave operations are to be integrated into Zayo's infrastructure-related operations and its Canadian operations. The deal is expected to close in the first quarter of 2017.
The Electric Lightwave agreement followed the Allstream purchase ($423 million (Canadian). That added some 18,000 route miles to the Zayo fiber network and gave Zayo a strong presence in Canada.
Zayo acquired Clearview International, a Texas-based colocation and cloud infrastructure services provider, $18.3 million. The assets were data centers in Dallas and Waco, adding 30,000 sq. ft. of colocation space and hybrid cloud infrastructure services.
In 2015 Zayo Latisys, a colocation and infrastructure as a service provider for about $678 million. Latisys acquisition brought colocation and Infrastructure-as-a-service (IaaS) offerings through eight data centers in Northern Virginia, Chicago, Denver, Orange County, California, and London.
6160 GOLDEN HILLS DR
Golden Valley, MN 55416-1020
Phone: 1 (763) 745-8000
Employer Type: Privately Owned
Purchasing and Inventory Control for Telcom and Networking: Gene Dee
Employees (This Location): 1
Employees (All Locations): 1
Golden Valley, MN