Thursday, August 30, 2007

Zayo Bandwidth Secures $225M

Zayo Bandwidth, a regional provider of fiber optics-based network services, announced Thursday that its focus as a business now lies in the telecommunications industry. The Louisville, Colo.-based company added that it has secured $225 million in financing from several venture capital firms, including Columbia Capital, M/C Venture Partners, Oak Investment Partners, Battery Ventures and Centennial Ventures. The news follows Monday's report of Zayo's $60 million purchase of PPL Telcom, a 4,600 fiber-route-mile network based in Allentown, Penn. Zayo also recently acquired Memphis Networx, a 200 fiber-route-mile network serving the greater Memphis area. Additionally, Zayo had previously reported that it has agreed to purchase Indiana Fiber Works of Indianapolis and Onvoy Inc. of Minneapolis. Those deals are expected to close in the third and fourth quarters of this year. Zayo said the two acquisitions and two pending purchases represent $125 million of annual revenue and 8,400 route-miles of fiber.