Zayo has completed its $52 million acquisition of the carrier and enterprise segments of Buhler, Kan.-based IdeaTek, a deal that immediately bolsters its fiber network to serve new carrier and on-net building locations in Kansas.
Under the terms of the agreement, IdeaTek will retain its residential and small-business divisions and will continue to operate under the name IdeaTek Telecom, LLC.
By acquiring IdeaTek's carrier and enterprise business lines, Zayo adds 1,800 route miles of fiber, including a dense metro footprint in Wichita, Kan. The network spans across Kansas and connects to over 600 wireless cell towers and more than 100 additional buildings connected to fiber.
Similar to other acquisitions Zayo has made in the U.S. and Europe, the IdeaTek deal is about scaling its fiber network to address more wholesale and business service opportunities.
The service provider's acquisition of regional providers like IdeaTek complements its organic network expansion efforts. Over the past year, Zayo has been enhancing its network reach in key markets including Indianapolis, while building key routes connecting Omaha and Dallas.
Interestingly, Zayo reported that its fiscal year first-quarter revenue rose 32 percent sequentially on an annualized basis to $320.6 million due to acquisitions and internal organic growth.
For more:
- see the release
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