Zayo files for IPO, expects to raise $100M
Zayo has filed the necessary paperwork with U.S. regulators to conduct an initial public offering (IPO) with hopes of raising up to $100 million.
Although Zayo has not set the number or price of shares to be sold yet, the company said the proceeds will be used to pay off debt, further acquisitions, working capital and capital expenditures.
Morgan Stanley, Barclays and Goldman Sachs were listed as lead underwriters for the IPO.
Built through a series of acquisitions of other various fiber-based service providers, Zayo's network connects 14,490 buildings, including 3,838 wireless towers and 527 data centers.
Just this week, the service provider completed its acquisition of Paris-based NEO Telecoms and announced it was also purchasing Atlanta data center and managed services provider AtlantaNAP.
Acquisitions have been a key driver of revenue growth for Zayo.
In its fiscal third-quarter, Zayo reported revenue of $278 million, up 6 percent sequentially due to a mix of organic growth related to new customer installations and acquisition-related growth. However, the company's net loss increased $7.4 million sequentially and $25.2 million year-over-year from the third quarter of fiscal year 2013.
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