Zayo to Sell zColo Data Center Assets to DataBank

Zayo Group Holdings, Inc., has entered into an agreement to sell zColo, including certain U.S. and European data center assets, to DataBank.

The transaction includes the sale of 44 data centers in more than 20 markets across the United States and Europe. DataBank will own and manage the sites, in which Zayo will remain a key anchor customer to provide network connectivity solutions for its customers.

“The applications that increasingly power our digital economy demand proximity to end users, scalable space and power, and network diversity and neutrality.”

“This agreement represents a material step in our path to focus on our core Networks business, which we first outlined in February 2019,” said Dan Caruso, CEO of Zayo. “With approximately 1,200 of the world’s most important data centers on our network, connectivity to major interconnection hubs and data centers will always remain a core part of our business. This transaction, however, will allow our colocation customers to benefit from the scale of a larger operator and allow Zayo to better align its resources around its fiber and connectivity business.”

This transaction merges the broad collection of zColo’s data centers and network interconnection assets with DataBank’s world-class data center footprint and Tier II market focus. The companies expect to collaborate closely in bringing colocation solutions to Zayo’s fiber customers and network connectivity solutions to DataBank’s colocation and cloud customers.

“The applications that increasingly power our digital economy demand proximity to end users, scalable space and power, and network diversity and neutrality,” said Raul Martynek, CEO of DataBank. “This transaction establishes the preeminent edge colocation platform in the U.S., allowing us to meet these demands across a wide geographic footprint and better serve our cloud, content and enterprise customers. We are excited to welcome zColo customers and employees to DataBank.”

The closing of the deal is subject to customary conditions and regulatory approvals. The transaction is anticipated to close by year-end 2020.