Zayo’s next fiber consolidation move is back on this side of the Atlantic, and actually rather far from the coast as well. The Boulder-based company has agreed to purchase the carrier and enterprise business of IdeaTek.
I haven’t run into IdeaTek before actually, but they operate a statewide fiber network and a dense metro footprint in Wichita. The 1,800 route miles of fiber hooks up some 600 towers and another 100 buildings, and complements Zayo’s footprint nicely. Zayo has a deep presence already in Kansas City, and just the other day announced a new longhaul build connecting Omaha and Dallas that will pass through the state as well.
For its part, IdeaTek will still be around as it will keep its residential and SMB businesses. Apparently there were several interested buyers for the fiber assets, but it’s no surprise Zayo won the auction of course given the dozens of other deals they’ve done over the last seven years. Financial details were not supplied, but the deal is expected to close early next year and I’m sure we’ll get a few numbers with Zayo’s next earnings report when February comes around.
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Categories: Mergers and Acquisitions · Metro fiber
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Anybody with a guess on multiple? Winner gets a milkshake.
2x ebidta plus debt