Zayo Group is seeking to sell its colocation data center business for about $1 billion, Bloomberg reports.
Digital Colony and and EQT Partners agreed to acquire the overall Zayo Group Holdings business in May 2019.
The colocation portion of the business -- called zColo by Zayo offers data center facilities in over 30 markets worldwide. Moreover, the colocation centers have over one million 'critical' square feet, the company's website indicates.
The colocation services include space and power; connectivity; protectional technical staff; and hybrid cloud capabilities. The facilities are carrier neutral, with access to more than 70 of the largest ISPs (Internet service providers) in the world.
Data Center Mergers and Acquisitions
Merger and acquisition (M&A) activity has been strong in the data center market. Recent deals include:
- October 2019: Data center developer and operator ServerFarm acquired 5NINES Global Holdings, a UK-headquartered global colocation data centre provider.
- June 2019: Next Tier Connect, the investment partnership of Next Tier HD and RedBird Capital Partners, acquired a data center and mixed use property in Monroeville, Pennsylvania.
- May 2019: DXC Technology acquired a Credit Suisse data center in Clifton, New Jersey, for an undisclosed sum.
- December 2019:DataBank, an enterprise-class data center provider, acquired LightBound, expanding its presence in the Midwestern United States.
