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Zayo closes Spread Networks acquisition

Zayo Group Holdings Inc. on Feb. 28 completed its acquisition of Spread Networks, a privately owned telecommunications provider that operates an 825-mile, high-fiber count long haul route connecting New York and Chicago.

As a result of the deal, Zayo will introduce a stand-alone business unit, Spread Networks by Zayo, which will be reported under its Fiber Solutions business segment. The unit will have Brandon Gouin as general manager, with members of Spread Networks joining the Zayo team.

The acquisition enables Zayo to combine Spread Networks routes with Zayo routes to provide a fully owned, low-latency wavelength route from Seattle to New York. Traffic to and from Asia, which connects through cable landing stations in the Pacific Northwest, are also express connected via the combination of Zayo existing fiber routes and the Spread Networks route.

Zayo acquired Spread Networks for $127 million in cash. Zayo expects to reach $10.5 million in annualized EBITDA from the Spread acquisition by the Sept. 30 quarter through cost synergies and organic growth.