Data Centers Featured Article

Zayo Group, a bandwidth infrastructure and network-neutral colocation services provider has announced that is has closed the deal of purchasing AGL (News - Alert) Networks (AGLN), which will now add around 850 route miles of owned fiber footprint and 270 buildings to Zayo's present Network. AGLN was the provider of dark fiber bandwidth infrastructure services in Atlanta, Phoenix and Charlotte. Customers purchasing these dark fiber services were able to access the raw, unlit fiber optic strands which navigate throughout AGLN's 850 route mile fiber network.

In a release, Ken desGarennes the Chief Financial Officer of Zayo Group said, 'Zayo Group continues to focus on infrastructure-based acquisitions that complement or bolster our existing network assets. Networks are a pure play dark fiber infrastructure provider and are expected to add $9- 10M of post synergized EBITDA and $160M of total contract value to Zayo Group.'

One hundred percent of revenue for AGLN came from the dark fiber related services. In CY2Q10 AGLN performed with above average sales, covering a sale of $237K of new Monthly Recurring Revenue (MRR) contracts. Some of the key financial and operational highlights as on the beginning of CY3Q10 were; the company had annualized recurring revenue of $17M alongwith a net installation of pipeline worth $195K MRR.

Around 60 percent of MRR are under contract till 2015 or beyond and more than 70 percent of revenue for AGLN came from its top 20 customers.

AGLN earned 60 percent of its revenue from National Carrier/ISP, followed by 15 percent revenue from Public Sector/Enterprise, 11 percent from the Wireless sector and 7 percent each from Data Centers/DR/Tech and Financial sectors.

In a release, Dan Caruso the President and CEO of Zayo Group said, 'We aim to build on the success that AGLN has achieved and, as such, Zayo will look to further bolster our dark fiber product and related services offerings. Dark fiber services act as a core building block upon which most telecommunications services, including fiber to the tower, web 2.0 applications, and other high bandwidth applications are built.'

Zayo Group has estimated a cost of over $100M for reconstructing the AGLN assets.

Zayo Group is a private limited company based in Louisville, Colo. The group is into the business of providing bandwidth infrastructure and network neutral colocation services.