Zayo Group closed its acquisition of Spread Networks, which operates a low-latency fiber route between Chicago and New York, and launched a new standalone business segment concentrated on low-latency networks.
Zayo said the new business unit, Spread Networks by Zayo, will leverage Spread’s brand name recognition, unique network and established customer support services.
The service provider paid $127 million in cash for Spread, one of several recent fiber route purchases that will help Zayo extend its reach across the country. Through the acquisition, Zayo said it can combine Spread Networks’ fiber routes with its existing routes for coast-to-coast, low-latency dark fiber and lit fiber-based solutions. Zayo can now offer what it calls a fully owned, low-latency wavelength route from Seattle to New York.
In addition, traffic to and from Asia – which connects via cable landing stations in the Pacific Northwest – are also express-connected through the combination of existing Zayo fiber routes and the Spread route.
Zayo Chairman and CEO Dan Caruso said in a statement that the Spread deal will help Zayo offer ultra low-latency network solutions to customers in the financial and content sectors, among others.
“We acquired Spread Networks because of their leadership in ultra low-latency network solutions for the financial and trading sectors,” Caruso said. “Spread Networks by Zayo will build on this flagship network, providing customers with additional fiber and microwave options for fast, high-bandwidth connectivity. For customers in finance and other sectors, including content, media and cloud providers, millisecond improvements in network speed can provide a powerful competitive advantage.”
Spread employees will join Zayo and will be led by Brandon Gouin, general manager of Spread Networks by Zayo. The new business unit will be reported under the Fiber Solutions business segment.
Filed Under: Infrastructure
