Saturday, November 25, 2017

Manning & Napier Advisors invests $80m buying Zayo shares, heavy data centre expansion lies ahead

Data centre and comms company builds on the announcement of several recent portfolio expansion and acquisitions.

Investment management firm Manning & Napier Advisors has invested $79.73m in the acquisition of shares from data centre operator and fiber owner  Zayo Group Holdings.

In total, Manning & Napier Advisors purchased 2,569,425 shares, nearly doubling the company’s stake in Zayo to 5,504,715 shares.

Shares were sold at $31.03 per share. Zayo’s shares hit one their highest value ever following the transaction closing the trading day at $34.76 in the NYSE on April 17, 2017. The company’s highest trading share price was $35.65 on November 30, 2016.

Zayo has in recent months carried out acquisitions and site expansions both in North America and Europe.

Its largest investment of the year was announced in March when the company acquired Electric Lightwave for $1.42bn.

Zayo has also acquired a data centre in Paris and another one in Santa Clara.

In April, the operator announced a “significant expansion” of its Los Angeles data centre presence with a new location at One Wilshire Building, 624 S Grand Ave.

The site will be the company’s fifth in California and will boast 24,215 sqf and 2MW of power.

The company said the expansion was driven by strong customer demand in Los Angeles, including a new agreement with a major webscale company as an anchor tenant in the space.

TJ Karklins, senior vice president of Zayo’s zColo business segment, said: “zColo’s One Wilshire data centre will provide carrier-neutral connectivity to all the major telecommunications and cloud providers.

“This facility will provide high-quality infrastructure to our clients in the globally significant Los Angeles data centre market. ”

Zayo runs today 40 data centres across North America and Europe. The company also owns 126,000 route miles and 9.9 million fibre miles servicing 370 markets.