Zayo Group splits into two separate companies

BOULDER — Zayo Group Holdings Inc. (NYSE: ZAYO) is splitting into two different companies.

The first, Zayo Infrastructure, will be a fiber-focused infrastructure firm in North America and Europe.  The second, EnterpriseCo, would be a high-bandwidth-focused enterprise service provider.

InfraCo will be made up of its current Fiber Solutions and zColo business segments, along with the Wavelength and IP Transit businesses in Zayo’s Transport segment. It will continue to be led by Zayo CEO and chairman Dan Caruso.

EnterpriseCo will comprise the current Enterprise Networks and Allstream segments, along with the SONET and Ethernet businesses from Zayo Transport. It will be subdivided into two business units: Enterprise Division and Carrier Division. The company will be led by new COO and president of Allstream, Tyler Coates.

The news came during Zayo’s first-quarter earnings report, where the company missed on its top and bottom lines. The company had an earnings per share of nine cents, which missed analyst expectations by two cents.

Zayo had a net income of $22.1 million, down from the same period in 2017, when the company had net income of $23.3 million. Its Communications Infrastructure segment had a net income of $25.5 million, while its Allstream segment had a net loss of $3.4 million.

Its revenue was $641.1 million, which was down just slightly year-over-year and missed analyst expectations by $7.2 million.

 

BOULDER — Zayo Group Holdings Inc. (NYSE: ZAYO) is splitting into two different companies.

The first, Zayo Infrastructure, will be a fiber-focused infrastructure firm in North America and Europe.  The second, EnterpriseCo, would be a high-bandwidth-focused enterprise service provider.

InfraCo will be made up of its current Fiber Solutions and zColo business segments, along with the Wavelength and IP Transit businesses in Zayo’s Transport segment. It will continue to be led by Zayo CEO and chairman Dan Caruso.

EnterpriseCo will comprise the current Enterprise Networks and Allstream segments, along with the SONET and Ethernet businesses from Zayo Transport. It will be subdivided into two business units: Enterprise Division and Carrier Division. The company will be led by new COO and president of Allstream, Tyler Coates.

The news came during Zayo’s first-quarter earnings report, where the company missed on its top and bottom lines. The company had an earnings per share of nine cents, which missed analyst expectations by two cents.

Zayo had a net income of $22.1 million, down from the same period in 2017, when the company had net income of $23.3 million. Its Communications Infrastructure segment had a net income of $25.5 million, while its Allstream segment had a net loss of $3.4 million.

Its revenue was $641.1 million, which was down just slightly year-over-year and missed analyst expectations by $7.2 million.