Zayo acquires Neo Telecoms, establishes new France business unit
Zayo has reached a deal to acquire Neo Telecoms, a Paris-based network infrastructure company, a move that will immediately increase the service provider's network capabilities in France.
Through this deal, Zayo will add 350 metro route miles in Paris and over 500 on-net fiber buildings. In addition to the fiber assets, Neo operates nine colocation centers across France, offering more than 36,000 square feet of data center space.
Upon completion of the deal, the Paris and regional network throughout France will be integrated into Zayo's existing European network connecting London, Frankfurt, Amsterdam and the U.S.
Neo gained notoriety for operating one of Paris' first fiber-based Metro Area Networks (MAN), which it uses to enable companies throughout France to connect to Paris' international business hub. Like Zayo, the service provider also delivers a suite of dark fiber, IP, Ethernet, wavelength and colocation services to more than 600 service provider and enterprise customers.
"Neo has established a strong Bandwidth Infrastructure presence in France and we believe this acquisition will enable growth through our combined fiber footprint for end-to-end solutions," said Dan Caruso, president and CEO of Zayo Group.
Although financial details of the acquisition were not disclosed, Zayo said it will be funded with cash on hand and is expected to close at the end of the second quarter of 2014. When the deal closes, the current CEO of Neo, Florian Du Boys, will become the leader of Zayo's new France business unit.
Purchasing Neo is part of a broader move by Zayo to become a bigger player in the European telecom market. The service provider's initial large move into the market came in late 2012 when it acquired AboveNet. Since then it has been expanding its existing network through organic builds and now a targeted acquisition.
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