Viatel has agreed to sell its non-Irish infrastructure and enterprise businesses to the Zayo Group (NYSE: ZAYO). The transaction will not affect existing Viatel operations throughout Ireland nor its European Voice and MPLS services.
The all cash transaction (approx. $US102 Million) will see the Viatel fibre network, which spans eight European countries, join the extensive U.S. and European network of Zayo. The transaction is expected to close by the end of the calendar year, subject to customary closing conditions.
Acquired in May 2013, Viatel is a wholly owned subsidiary of the Digiweb Group, founded by CEO Colm Piercy. In recent years, ten companies have been acquired and integrated by the Digiweb Group as it pursued growth and new markets. Further acquisitions are also expected over the coming year to deliver on Viatel’s goal to position the firm as the leading enterprise ICT provider in Ireland.
“Quay Ventures invested in the Digiweb Group in 2012 and we are delighted with this news. It has been an exciting few years and this successful divestment is the culmination of years of hard work by the team. We look forward to continue investing with Viatel in the expansion of our Irish and European businesses,” said Nigel Kelly, Investment Director from Quay Ventures.
“This is an exciting time for the Company and the current transaction provides an excellent fit for the European infrastructure business to be part of a wider, fast growing, listed entity that will develop the business further,” said Viatel CEO Colm Piercy. “We are excited by a wave of opportunities within the business currently and with the support of our customers, staff, management and investors we will continue our strong growth into the future, expanding our capabilities through strategic acquisitions and delivering innovative propositions to the market, differentiated by our focus on excellent customer service.”