BOULDER, Colo.–(BUSINESS WIRE)– Zayo Group Holdings, Inc. (NYSE: ZAYO) completed the $12 million acquisition of KIO Networks’ San Diego data centers. The two data centers, located at 12270 World Trade Drive and 9606 Aero Drive, total more than 100,000 square feet of space and 2 megawatts (MW) of critical, IT power, with additional power available. The acquisition builds on Zayo’s continued growth on the West Coast, which includes extensive network assets from Electric Lightwave and recently announced data centers in Santa Clara and Los Angeles.
Zayo has experienced accelerated demand for data center and interconnection services in San Diego, fueled by customers in IT, healthcare and professional services. The acquisition of Kio’s data centers not only provides crucial capacity to meet this demand, but also an embedded revenue base that supports the financial profile of the deal. Zayo’s pre-synergy acquisition multiple is 9.6x LQA EBITDA.
The San Diego facilities will provide extensive interconnection and access to Zayo’s fiber backbone in California, which now encompasses more than 8,000 route miles. Zayo’s high-count fiber also connects to multiple landing stations providing subsea cable access up the California coast and to the Asia Pacific (APAC) region.
“California is an important hub of the global economy, and this acquisition further strengthens Zayo’s position as a leading infrastructure provider,” said T.J. Karklins, senior vice president of Zayo’s zColo business segment. “We now have zColo datacenters in all of California’s leading metros, creating a strong chain up the West Coast which extends to Seattle. Customers increasingly require solutions that require network connectivity, colocation and cloud infrastructure. Zayo offers all three at scale.”
For more information, please visit zayo.com.
