AtlantaNAP to be sold to zColo (Zayo)

drmike

drmike

100% Tier-1 Gogent
BREAKING NEWS

The ever-popular southeast USA hub in Atlanta (AtlantaNAP) is in the process of changing hands.

GNAX seems to have a quite a big build out in Atlanta http://gnax.net/data_centers/atlantanap.html.  They also operate in Dallas, Texas.

The buyer of AtlantaNAP is reported to be zColo, a subsidiary of Zayo, the rapidly growing bandwidth company.

Folks will remember zColo and Zayo with their stealthy acquisition of CoreXchange in Dallas, Texas:



This comes a few weeks after their long time CTO Marty Snella resigned and amendment of Zayo's credit agreement to include $275 million in new add-on to its financing.
 
drmike

drmike

100% Tier-1 Gogent
About that $275 million financing in May:

On May 16, 2014, Zayo Group International Limited, a subsidiary of the Company, entered into a Share Sale and Purchase Agreement (the "Agreement") with Ego Holdings Limited and shareholders of Geo to acquire all of the outstanding shares of Geo Networks Limited ("Geo"), a London-based dark fiber provider. The Agreement was consummated on the same date, at which time the Company acquired 100 percent of the equity interest in Geo. The purchase price of approximately £175 million was funded with a combination of cash on hand and available funds drawn on the Company's $250.0 million revolving credit facility.

 

Geo owns and operates a high capacity fiber network in the UK, providing managed networks, dark fiber and co-location services to a variety of high-bandwidth sectors including media companies, service providers, financial services, data centers and gaming organizations. The acquisition will add over 2,100 route miles to Zayo’s European network, and connectivity to 587 on-net buildings.
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Francisco

Francisco

Company Lube
Verified Provider
Jesus Christ.

I wonder if they sold the dedicated business as well or if it's just the facility?

Maybe they'll buy Burstnet next :p

Francisco
 
drmike

drmike

100% Tier-1 Gogent
Maybe they'll buy Burstnet next :p

No one wants the tattered remains of BurstNet.  Zayo is WAY smarter than that.  <---

Considering the price of the UK buy ($250~ million USD), pretty sure that deal included physical real estate in addition to fiber, gear, customers, etc.

The UK deal also included at least partial ownership of sea fiber serving Dublin and Wales.  Cogent was a partner in that build out.
 
coreyman

coreyman

Active Member
Verified Provider
drmike said:
BREAKING NEWS

The ever-popular southeast USA hub in Atlanta (AtlantaNAP) is in the process of changing hands.

GNAX seems to have a quite a big build out in Atlanta http://gnax.net/data_centers/atlantanap.html.  They also operate in Dallas, Texas.

The buyer of AtlantaNAP is reported to be zColo, a subsidiary of Zayo, the rapidly growing bandwidth company.

Folks will remember zColo and Zayo with their stealthy acquisition of CoreXchange in Dallas, Texas:



This comes a few weeks after their long time CTO Marty Snella resigned and amendment of Zayo's credit agreement to include $275 million in new add-on to its financing.
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zColo is just buying up tons of stuff.
 
coreyman

coreyman

Active Member
Verified Provider
concerto49 said:
It's not just zColo. Zayo is in general. They've already got more dark fiber and a few companies in Europe lately for transit.
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Why do companies always brag about dark fiber... it's fiber that's not lit up yet... why do we care as long as they can get new lines ran in a timely manner anyway?
 
Wintereise

Wintereise

New Member
We care because it represents definite possibilities for future capacity upgrades in those locations.

Risk analysis performed by any serious businesses in those specific regions would want to know, and will ask that specific question.
 
drmike

drmike

100% Tier-1 Gogent
Dark fiber matters because the installation and fiber is already there.  It's basic small dollars to light dark strands, slap the router and other network stuff in place and now running more bandwidth.

If dark fiber or lit isn't available somewhere, well good luck getting service for business at high speeds.  Rolling fiber out per mile and all the government crap and payouts due really ads up.

Now, similarly, a lot of cities have private owners who are squatting on fiber loops around the metro and priced insanely high.  Really bad issue made worse in some places where you can't even get fiber from someone else - they have a monopoly on the stuff.
 
drmike

drmike

100% Tier-1 Gogent
Glad someone is re-posting in essence on WHT.... I haven't seen any public confirmation yet, people are being quiet on this deal.
 
Francisco

Francisco

Company Lube
Verified Provider
drmike said:
Glad someone is re-posting in essence on WHT.... I haven't seen any public confirmation yet, people are being quiet on this deal.
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Check his signature.

He has service in AtlantaNAP so it's likely he got sent it by his account rep/owners.

Francisco
 
M

MarkTurner

New Member
Verified Provider
GNAX Atlanta has been up for sale for a long time. They were soliciting offers in late 2012.

This is not unexpected.
 
drmike

drmike

100% Tier-1 Gogent
Well darn near a month since I put this info out....  vpsBoard with the breaking news nearly a month before the press...

This was posted on WHT earlier:

Effective as of July 1, 2014, the AtlantaNAP data center facility and colocation operations of Global Net Access were acquired by zColo, the colocation division of Zayo Group. Zayo Group also acquired all VPDC and GNAX Cloud services. Zayo Group is a global provider of bandwidth infrastructure services, including dark fiber, wavelengths, SONET, Ethernet, IP services, and carrier-neutral colocation and interconnection.

Going forward, your colocation, managed VPDC and GNAX Public Cloud hosting contracts will be serviced by zColo. The entire AtlantaNAP facility and the majority of its staff were acquired by zColo. The datacenter will be zColo’s 28th facility and will complement Zayo’s dense fiber network throughout the greater metropolitan area.

Like AtlantaNAP, zColo delivers industry-leading support, security and operational reliability to protect your mission-critical information and systems. zColo will continue to operate the Atlanta site as a carrier-neutral colocation facility. Your existing services will be governed by your current agreement and continue to operate in accordance with all contracted SLAs and service quality expectations. zColo plans to invest significantly to further improve and expand the AtlantaNAP facility, and is eager to explore opportunities to support existing customer requirements, be they in Atlanta or throughout the zColo national footprint.

GNAX will keep and continue to operate GNAX Health, its cloud-based medical image archive and exchange division and NetDepot, its dedicated server division. This transaction allows GNAX to focus its resources and assets on growing the GNAX Health and NetDepot lines of business and provide superior service to those customers going forward. If you also have services from these divisions within GNAX, you will continue to be a customer of GNAX for that service and no changes or interruptions in service are expected.

Please expect further communications from zColo regarding your account and services during this transition. You will continue to receive your bill from Colo Facilities Atlanta and/or Global Net Access until your account details have been transferred to zColo. Your account will continue to be serviced as usual and payments and/or support and billing requests will go through the normal channels until transitioned.

It was a pleasure serving you, and we look forward to your continued success with zColo!
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