Zayo To Carve Out European, International Entities

Zayo announced a bit of reorganization this morning. They are carving out two new separate entities designed to better manage their operations outside of North America.

Zayo Europe will operate Zayo’s fiber infrastructure across 8 countries in Western Europe. It will be led by a newly appointed CEO, Colman Deegan, with employee hubs in London, Paris, Stuttgart, and Sofia. Meanwhile Zayo’s activities beyond both North America and Europe will get their own entity and management team, although details were not given.  The nature of Zayo’s business beyond North America and Europe encapsulated as a separate entity is a bit harder to pin down, but all will likely become clearer over time.

Full legal separation is anticipated in the 2nd half of 2024. The question then becomes what do Zayo and its owners want to do with these entities? Might they become platforms for consolidation on the international front? Or might they be put on the market and monetized? Certainly the European piece might be seen in that light, but with Zayo one always has to think about inorganic expansion plans.

Either is possible, but given the relative sizes and all that I’d guess the biggest overall impact will be the ability of Zayo’s North American core business to focus its efforts in, well, North America.

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Categories: Fiber Networks · Mergers and Acquisitions · Metro fiber