Viatel the full service telecoms and managed services operator based in Dublin, has agreed to sell its non-Irish infrastructure and enterprise businesses to the Zayo Group (NYSE: ZAYO). The transaction will not affect existing Viatel operations throughout Ireland nor its European Voice and MPLS services, through which the company continues to deliver leading enterprise ICT solutions to thousands of customer locations.
The all cash transaction (approx. $US 102 Million) will see the Viatel fibre network, which spans eight European countries, join the extensive U.S. and European network of Zayo. The transaction is expected to close by the end of the calendar year, subject to customary closing conditions.
Acquired in May 2013, Viatel is a wholly owned subsidiary of the Digiweb Group, founded by CEO Colm Piercy. The Dublin headquartered group is well funded and supported in its ambitious growth programme by external investors Proventus Capital Partners, Quay Ventures and Morgan Stanley.
In recent years, ten companies have been acquired and integrated by the Digiweb Group as it pursued growth and new markets. Further acquisitions are also expected over the coming year to deliver on Viatel’s goal to position the firm as the leading enterprise ICT provider in Ireland.
“Quay Ventures invested in the Digiweb Group in 2012 and we are delighted with this news. It has been an exciting few years and this successful divestment is the culmination of years of hard work by the team. We look forward to continue investing with Viatel in the expansion of our Irish and European businesses,” said Nigel Kelly, Investment Director from Quay Ventures.
“This is an exciting time for the Company and the current transaction provides an excellent fit for the European infrastructure business to be part of a wider, fast growing, listed entity that will develop the business further,” said Viatel CEO Colm Piercy. “We are excited by a wave of opportunities within the business currently and with the support of our customers, staff, management and investors we will continue our strong growth into the future, expanding our capabilities through strategic acquisitions and delivering innovative propositions to the market, differentiated by our focus on excellent customer service.”
About Viatel Ireland
Viatel is a leading telecommunications company and provides Connectivity solutions tailored specifically for Enterprise, Public Sector, and Wholesale customers throughout Ireland and Europe. With extensive infrastructure in Ireland including licensed radio solutions, metro fibre and data centres in Dublin, and a European voice and IP/MPLS network, with POPs in London, Amsterdam, Frankfurt, Dusseldorf, Paris, Brussels, Zurich, Lyons, Milan and Marseilles, Viatel delivers a wide portfolio of leading data, cloud, managed services and voice solutions through its platforms and partner networks. In addition, it is directly connected to the largest content distribution networks, internet peering exchanges, public cloud platforms, and internet companies globally.
Viatel was advised in this transaction by global financial advisory firm Arma Partners.
About Zayo Group
Zayo Group Holdings, Inc. (NYSE: ZAYO) provides bandwidth infrastructure services, including fiber and bandwidth connectivity, colocation and cloud services to the world’s leading businesses. Customers include wireless and wireline carriers, media and content companies and finance, healthcare and other large enterprises. Zayo’s 87,000-mile network in the U.S. and Europe includes extensive metro connectivity to thousands of buildings and data centers. In addition to high-capacity dark fiber, wavelength, Ethernet and other connectivity solutions, Zayo offers colocation and cloud services in its carrier-neutral data centers. Zayo provides clients with flexible, customized solutions and self-service through Tranzact, an innovative online platform for managing and purchasing bandwidth and services. For more information, visit