Zayo Group
Overview
Zayo Group was formed in 2006 to provide bandwidth services to carriers, web-centric companies, public institutions and enterprises. Zayo, a wholly owned subsidiary of Communications Infrastructure Investments, LLC (CII), owns and operates fiber optic networks in various regions of the United States. Zayo’s mission is to be a highly reliable and responsive bandwidth provider in those geographies where it has fiber networks.
Thesis
We were among the first to recognize that accelerating demand for bandwidth-intensive applications such as video, backup and wireless data would drive demand for fiber optic transport infrastructure. The market was highly fragmented, creating an opportunity to build a market leading provider.
Investment
M/C Partners and Columbia Capital provided seed capital to form Zayo. We partnered with CEO, Dan Caruso, a founding executive at Level 3 and the CEO of ICG Communications, a prior M/C investment.
Value Add
In addition to developing the thesis and recruiting the team, M/C provided deal support as Zayo rapidly pursued acquisitions, adding and integrating more than 30 companies in 7 years.
Outcome
From 2007 to 2014, Zayo became an expert in rapid, efficient integration and amassed a sizable asset base: 81,000 route miles of fiber connecting more than 16,000 buildings in 308 markets worldwide. In October 2014 the company completed a very successful IPO that valued the company at ~$5 billion.
Team Members
Featured
